Sau iPhone, Foxconn đang thảo luận về việc lắp ráp Apple iPad tại Ấn Độ

Foxconn is evaluating plans to assemble Apple’s flagship tablet iPad in India, marking a significant expansion of its current operations focused on making iPhones, multiple people aware of the developments told ET.The Taiwanese contract manufacturer may begin assembling iPads at its facility in Tamil Nadu’s Sriperumbudur, in what will be a show of confidence in the rapidly expanding supply chain in India for Apple’s iconic products.

So far, India-based units of Foxconn and other global contract manufacturers have only assembled Apple’s smartphones. “Foxconn is seriously looking to start assembling Apple iPads out of its Tamil Nadu facility,” according to one person cited above.

A second source in the know said “some rounds of discussions have already happened with the government as well on this”, adding that “their experience so far has been very good, and they are coming full force. They will double what they have in the next few years, which includes iPhone, iPads and some other products too”.

However, assembly of the “Mac range of laptops may take some time as the production volume is very small”.

Apple’s plans to expand the portfolio of products assembled in India ties into its strategy of diversification away from China. In fact, Apple had already diverted a portion of its product development for the iPad to Vietnam last year.

Queries sent to Apple and Foxconn remained unanswered as of press time Thursday.

Industry experts pointed out that capabilities required to produce an iPad are similar to that for smartphone assembly, unlike a laptop which requires far more complex production facilities. “It ( iPad) is like a bigger iPhone in essence,” said one industry source on condition of anonymity. “So, it is something that can be assembled in India without too much trouble as Apple’s contract manufacturers are already well equipped to manage such functions.”

Taiwanese research firm Isaiah Research told ET that electric car maker BYD’s facility in Phu Tho, Vietnam, started assembling iPads in the second half of 2022 and that as per their estimates, Vietnam accounts for about 5-10% of all iPad assembly. Additionally, Foxconn set up production lines in Bac Giang, Vietnam, to start assembling MacBooks.

Pull of the Indian market

“Expanding iPad production in India is primarily aimed at diversifying supply chain risks,” said Boyce Fan, Vice President of Research at TrendForce.

“Additionally, targeting the domestic market in India is also a consideration. It is currently estimated that the annual iPad shipments will reach 49 million this year, a year-over-year increase of 4.5%,” he noted.

To be sure, Foxconn will also gain from India’s production-linked incentives (PLI 2.0 for IT Hardware) which includes tablets, as it aggressively increases its investments in India.

ET had reported on June 28 that the company was looking to begin manufacturing AI servers — the high-performance computing engines that train and run artificial intelligence models — at its Sriperumbudur plant. Further, Google was said to be in advanced talks with Foxconn to make Pixel smartphones at the same facility.

In February, Foxconn in an exchange filing had said its Indian subsidiary would spend Rs 1,200 crore to build a factory that would come up on company-owned land. It is also building a mega factory outside Bengaluru, which is expected to primarily make iPhones.

The Taiwanese contract manufacturer has also announced that it would invest $37.2 million and would join hands with IT major HCL Group to establish a chip packaging and testing facility in India. The proposal is, however, awaiting government approval.

With iPhones, India has reached Completely Knocked Down (CKD) levels but with iPads, it is likely that they will have to start with Semi-Knocked Down (SKD) first for some time before reaching CKD levels, said an industry source.

SKD refers to a manufacturing and trade practice where a product is partially assembled, before being exported to another country. CKD is like SKD, but it goes a step further. In CKD, the product is shipped in a completely disassembled state.

Ashweej Aithal, an analyst at market research firm Canalys, said Apple was initially hesitant about locally manufacturing iPads and MacBooks in India due to its previous conflicts with government restrictions on its collaboration with BYD.

The company’s attempt to partner with China’s BYD to make iPads in India hit a roadblock due to government restrictions owing to geopolitical concerns.

“The recent reduction of the Basic Customs Duty (BCD) in the Budget from 20% to 15% on components is also expected to expedite domestic manufacturing plans,” Aithal said. “Foxconn is likely to start assembling iPads in the second half of next year if these plans materialise.”