iPhone production: Amid China covid scare, Foxconn to quadruple workforce at Tamil Nadu plant

Apple is facing a major demand-supply gap for iPhone 14 Pro and iPhone 14 Pro Max as Foxconn's plant in China's Zhengzhou is struggling to ramp up production due to strict covid curbs and worker shortage. Apple has already confirmed a delay in iPhone 14 Pro and iPhone 14 Pro Max delivery due to this issue. Now, with China further tightening the Covid curbs, Foxconn is planning to quadruple its workforce in the Tamil Nadu plant to ramp up production. The disruptions at the Zhengzhou plant prompted Apple to lower its shipment forecast for premium iPhone 14 models this week, dampening its sales outlook ahead of the year-end holiday season.

According to a Reuters report, Foxconn plans to boost the workforce at its Tamil Nadu plant to 70,000 by adding 53,000 more workers over the next two years. Though the Tamil Nadu plant is comparatively very smaller than Foxconn's Zhengzhou plant, it is key to Apple's efforts to shift production away from China.

Foxconn has already begun production of the iPhone 14 in India. Foxconn has shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, the report said.

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According to the report, the Tamil Nadu government was having discussions with Foxconn to address issues such as housing facilities for workers as it looked to expand. 

Currently, iPhones are assembled in India by at least three of Apple's global suppliers: Foxconn and Pegatron in Tamil Nadu; and Wistron in nearby Karnataka state. JP Morgan analysts estimated in September that Apple may make one out of four iPhones in India by 2025, and 25% of all Apple products, including Mac, iPad, Apple Watch and AirPods, will be manufactured outside China by 2025 from 5% currently.

(With Reuters inputs)