The evolution of Zhengzhou into the so-called ‘iPhone City’ serves as a pivotal case study for India as it strives to carve out its own niche in the global electronics manufacturing landscape. Once a quiet administrative hub, Zhengzhou transformed dramatically after Taiwanese tech giant Foxconn set up its largest factory there in 2010. This shift not only brought economic prosperity but also a complete overhaul of the city’s social and infrastructural fabric. Spanning over 1.4 million square meters, Foxconn’s facility is a self-sufficient ecosystem, catering to the needs of its 200,000 to 400,000 employees with amenities like hospitals, entertainment centers, and even dedicated policing. This model raises the bar for what India must achieve if it hopes to replicate such success.
As India eyes ambitious targets of $300 billion in electronics production and $100 billion in exports, the lessons from Zhengzhou become increasingly relevant. S Krishnan, secretary in the Ministry of Electronics and Information Technology, emphasizes that a robust social infrastructure is essential for the country to scale its electronics manufacturing services (EMS). He points out that while some states are making strides in providing industrial housing, the focus must also shift to developing ancillary services and facilities that enhance quality of life. This sentiment is echoed by experts who note that attracting smaller component makers from Taiwan, Japan, and South Korea hinges on the appeal of both housing and a superior lifestyle.
The Indian landscape is already shifting, with Foxconn making significant investments in Tamil Nadu, including a groundbreaking industrial housing project. This initiative is a first for India and mirrors successful models seen in China and Vietnam. As Sana Hashmi from the Taiwan-Asia Exchange Foundation notes, creating a Taiwan-focused science park could serve as a magnet for Taiwanese investment, providing a structured framework for collaboration that could lead to sustainable commercial ties.
The competition among Indian states is heating up, with Telangana, Andhra Pradesh, and Karnataka all offering substantial land packages to entice Foxconn. Telangana’s ambition to build a ‘Foxconn City’ reflects a growing recognition that social infrastructure is not merely a luxury but a necessity. The state’s proactive approach mirrors the strategies employed by local Chinese governments, which have historically leveraged subsidies and tax incentives to attract foreign investment.
Meanwhile, homegrown players like Tata Electronics are also stepping up, with plans to establish a modern township in Hosur. This effort aligns with the broader vision of transforming the region into a manufacturing powerhouse, akin to Jamshedpur. The Tata Group’s collaboration with the state government to build dormitories for industrial workers highlights a growing awareness of the importance of worker welfare in attracting and retaining talent.
As the stakes rise, it’s clear that India must not only focus on the hard infrastructure of factories but also invest in the soft infrastructure that supports a thriving community. The challenge is immense, but the potential rewards are even greater. If India can successfully create an environment where both local and international talent can flourish, it will not only enhance its attractiveness as a global electronics hub but also secure a more significant slice of the global supply chain. The clock is ticking, and the race is on.
