Foxconn is planning to invest $1 billion to establish a new facility in Tamil Nadu.

The new plant will focus on assembling smartphone display modules, according to a report by The Economic Times.

This will be the first display module facility Foxconn has built in India, and it is expected to mainly support the production of Apple’s iPhones.

The new plant could also benefit other manufacturers such as Pegatron and Tata Electronics, as these companies may have access to the components produced at the facility.

Foxconn has reportedly secured 5,00,000 square feet of land at an industrial park in Oragadam, near Chennai.

This new site is close to its existing smartphone assembly plant, allowing for streamlined operations and potentially faster production cycles.

According to Tarun Pathak, research director at Counterpoint, assembling display modules locally could add between 2-3% more value to the overall production process in India, on top of the 5% value already added by phone assembly.