NEW DELHI: Taiwan’s Foxconn will more than double smartphone manufacturing capacity at its Andhra Pradesh factory site this year and aims to establish a campus in the state as the world’s largest contract manufacturer ramps up Make in India plans, two people aware of the matter said.“The intent is to take total production capacity to 2.5 million smartphones a month by the year-end and add 1,000 people to its existing workforce,” one of them said. Foxconn makes about 1 million smartphones a month at the facility, which has 25 assembly lines and employs about 6,000 people.“The number of clients could also double,” the second person said, citing anonymity. The expansion may incur a “few million dollars” of investment.Three new buildings of a total 500,000 square feet will be ready in the next five to six months and have 10 smartphone assembly lines.Foxconn declined to comment on the plans, but said it is “encouraged by the productive dialogue that we have had with key stakeholders, including relevant government officials and industry partners, in India.” The company added that “significant” plans for India are being finalized and will be rolled out in phases over the next five years.The company will acquire more space and establish a campus in Andhra Pradesh on the lines of what it had in Chennai. Foxconn Chennai’s plants, which opened in 2006, became defunct after Nokia stopped making phones there. Labour strife saw the plants being shut early last year.The largest assembler of Apple’s iPhones began making smartphones at the current site in July last year following policy changes, which made this cheaper than importing the devices from China.The latest production targets are likely to be met with ease as many Chinese smartphone companies are making their way to India, the fastest-growing smartphone market that’s set to become the second largest in absolute numbers by 2017, surpassing the US.Since July, Foxconn has added Microsoft, Xiaomi Oppo , Gionee, Asus and American brand Infocus to its list of clients that get phones made locally. The new production facilities will cater to increased orders from these companies besides new smartphones.India has become Foxconn’s key focus since 2015 when Chairman Terry Gou visited the country and committed to invest $5 billion in Maharashtra over five years on a new electronics manufacturing facility. Hon Hai Precision Industry Co. Ltd—Foxconn is the trade name--aims to develop 10-12 facilities in India, including factories and data centres, by 2020 and employ millions directly and indirectly.People aware of the company’s thinking said it would want to solidify operations in Andhra Pradesh before moving to other states, even though conversations to begin new businesses in other states, such as Maharashtra, were on. The pact “signed with the government of the state of Maharashtra, India, outlining investments that Foxconn intends to make, underscore the company’s commitment to the country,” it said.The company’s other business units, which make televisions, routers and other items, could set up operations in the western state, depending on availability of space and skilled workers.The next logical step would be to create an ecosystem by bringing component suppliers from China to the country, to make manufacturing more economical. If the suppliers can make the components at the same price in India, it would relieve pressure on the low-margin business and increase efficiencies.“As a long-term investor and partner to the local communities where we operate, Foxconn is committed to collaborating with our partners in India to create a conducive industry ecosystem to support the sustainable development of India’s technology and manufacturing sectors,” the company said.