Foxconn looks to ramp up workforce on higher Apple orders, key licence.

Chennai: Foxconn Hon Hai, the Taiwanese contract phone maker for Apple, plans to nearly double the headcount at its Chennai plant amid higher orders from the iPhone maker that is expected to post record numbers in 2022, people familiar of the development said.

Apple has got the government’s clearance for denotifying 40 acres inside Foxconn plant premises near Chennai, which would allow the company to ramp up production for the domestic market.

“The expansion has been on the cards. A portion of their premises has been denotified to ramp up production, for which they need to increase their workforce,” said a person directly aware of developments at the Taiwanese phone factory.

Companies that operate in special economic zones (SEZs) can produce for the local market by applying for denotification of portions of their factory as domestic tariff area (DTA).

The company has also accelerated its drive to reopen hostels after all of them were shuttered post a food-poisoning incident late last year. Now, a little over 10,000 of the total 15,000 workers have returned to the company-provided accommodations.

State government officials aware of Foxconn’s reopening drive said almost all hostels, except those that Foxconn opted not to open now, have been made functional.

“By May first week, Foxconn should be able to have its total workforce back at the hostels,” said an official aware of Foxconn's workforce at the plant.

The official added that Foxconn was building a large hostel at Vallam where the company plans to house its employees.

Mails sent to Apple and Foxconn remained unanswered as of press time Monday.

ET had reported earlier this week that Apple has started production of its high-end iPhone 13 in India at Foxconn’s plant to help deepen the US smartphone major’s presence in India.

Foxconn’s interest to scale up investments in India is in line with other Taiwanese companies that are eyeing other Southeast Asian countries, apart from China, to expand their manufacturing footprint, foreign policy expert Sana Hashmi told ET.