Contract manufacturer Foxconn is reportedly looking to expand its operations in India by manufacturing AI servers, following the success of its iPhone production in the country.

What Happened: Foxconn is planning to manufacture AI servers, the high-performance computing engines that train and run artificial intelligence models, at its Indian facilities, The Economic Times reported citing sources. This move comes in the wake of the company’s successful iPhone production in India.

The company is likely to use its existing manufacturing facilities in Tamil Nadu for manufacturing AI servers.

See Also: Nazara Technologies Shares Gain As Unit Nabs More Stake In German Firm

On Thursday, the Indian government ordered the Tamil Nadu government to probe Foxconn’s alleged discriminatory hiring practices. A Reuters report said Taiwan was not hiring married women for its iPhone assembly factories.

In January, Foxconn announced teaming up with HCLTech to build an outsourced assembly and testing unit (OSAT) for semiconductor chips. The deal was worth $100-$150 million (around ₹834 crore to ₹1251 crore).

Why It Matters: Foxconn’s decision to manufacture AI servers in India aligns with the country’s push for increased local production and reduced dependence on imports, particularly in the technology sector. This move not only strengthens Foxconn’s foothold in the Indian market but also supports India’s ‘Make in India’ initiative, aimed at transforming the country into a global manufacturing hub.

Read Next: NHPC Inks Power Purchase Agreement With GUVNL For 200 MW Solar Project