Taiwan’s Foxconn is exploring a potential investment of about $1 billion to establish a smartphone display module assembly facility in Tamil Nadu, as reported by The Economic Times. This would be Foxconn’s inaugural plant of this kind in India, primarily aimed at supporting Apple’s iPhone manufacturing.
The new facility is expected to enable local sourcing of components for other manufacturers like Pegatron and Tata Electronics, reducing reliance on imported display modules from China. Foxconn has reportedly acquired approximately 500,000 square feet of space at the ESR Oragadam Industrial & Logistics Park, adjacent to its existing smartphone assembly site near Chennai. Experts believe this initiative could enhance India’s role in the global electronics assembly and manufacturing landscape.
According to Tarun Pathak, research director at Counterpoint, while smartphone assembly contributes about 5% of local value, adding display assembly could further increase that by 2–3%. The level of value addition in India will be a critical factor in the success of this venture.
Foxconn’s move to also assemble Google Pixel phones in India is seen as part of a broader strategy to optimize production processes. The company is expanding its smartphone operations and is eyeing opportunities in sectors such as electric vehicles, semiconductors, ICT, and battery manufacturing.
An industry expert highlighted that local assembly of display modules is a pivotal advancement, as India heavily depends on imports for these components, resulting in elevated input costs and supply chain issues. It is estimated that 60–65% of display module imports originate from China, with South Korea providing another 20–25%. Localizing assembly can help manufacturers reduce supply cycles, lead times, and overall costs.
Key global players in the display module market include Samsung Display, BOE Technology, LG Display, Tianma Microelectronics, AU Optronics, and Japan Display. In India, the leading assemblers of smartphone display modules are TCL CSOT in Tirupati, Andhra Pradesh, and TXD (India) Technology in Bawal, Haryana, with CSOT serving clients like Samsung and Xiaomi, and TXD catering to Vivo and Oppo.
