Apple ecosystem to provide residential accommodations for factory workers

After creating 150,000 direct jobs over two and a half years, the Apple ecosystem is now turning its attention towards providing residential accommodations for factory workers, emulating the models of industrial housing seen in China and Vietnam.

Government officials said that Apple’s contract manufacturers and suppliers, including Foxconn, Tata, and Salcomp, are in the process of developing housing for their employees. These residences are being built through a public-private partnership, marking the largest private-sector initiative of its kind. The initiative aims to construct over 78,000 units, with Tamil Nadu set to receive the highest allocation of 58,000 units.

The majority of housing unit construction is being undertaken by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). Additionally, the Tata Group and SPR India are involved in constructing homes.

Under the scheme, the Centre is expected to contribute 10-15 per cent of the funding, with the remaining portion sourced from state governments and entrepreneurs. Officials anticipate that construction and handover to the private sector will conclude within the current financial year, ending on March 31, 2025.

“The massive employee housing initiative aims to enhance efficiency and provide security, particularly for migrant women employees, the majority of whom fall in the 19-24 age group,” said an official.

This large-scale employee housing project, specifically tailored for women employees, is a first in India, officials said.

Currently, most employees reside in rented accommodations and endure lengthy bus commutes to reach the factories. Given that a significant portion of the workforce comprises women, this setup also raises security concerns, they added.

Officials further noted that the electronics industry is sensitive to location and benefits from proximity to a large airport for easy cargo transportation. The government aims to provide comfortable housing for workers, many of whom come from various parts of the country.

“That is why you need to ensure that they are given good-quality housing somewhere close to the factory as that improves productivity, conditions of work and it also results in better welfare outcomes for the workers,” stated S Krishnan, secretary of the Ministry of Electronics and IT (Meity).

Apple’s largest iPhone supplier in India, Foxconn, which is based in Sriperumbudur, Tamil Nadu, will utilise nearly 35,000 of these units. Foxconn currently employs 41,000 employees, with 75 per cent of them being women.

Tata Electronics is constructing 11,500 units for its employees at the Hosur facility. Tata’s primary focus is on manufacturing iPhone enclosures for both domestic use and exports.

Salcomp, a manufacturer of power adaptors, enclosures, and magnetics for Apple, will utilise 3,969 housing units.

The US tech giant has intensified its focus on India, the world’s second-largest smartphone market, amidst geopolitical tensions. Simultaneously, it has also faced a downturn in its key markets of the US and China.

The company began iPhone manufacturing in India in 2017 and expanded local production under the production-linked incentive (PLI) scheme, which commenced in August 2021. Since then, it has collaborated with suppliers to assemble the latest iPhone models through its contract manufacturers—Foxconn, Wistron, and Pegatron—and has also increased local production of components. Business Standard