A manufacturing facility is being inaugurated by Cisco in Chennai, which will create 1,200 jobs

In a strategic move to enhance its local manufacturing capabilities, Cisco has launched its first production facility in Chennai, as announced by the US-based technology giant on Friday. This initiative is set to bolster Cisco’s capacity, with expectations to generate over $1.3 billion annually, thereby strengthening both its domestic production and export potential.

The Chennai manufacturing facility is anticipated to create approximately 1,200 job opportunities in Tamil Nadu. Cisco has joined forces with Flex to establish this advanced unit, which will initially concentrate on producing Cisco’s Network Convergence System (NCS) 540 Series routers. The company aims to manufacture high-quality routing and switching products at this site to address the increasing market demand.

Cisco emphasized, “This state-of-the-art facility will manufacture a variety of our top-quality routing and switching products to meet the rapidly escalating technological requirements of organizations across India and around the globe.”

The facility was officially inaugurated by the Union Communications Minister, Jyotiraditya Scindia, along with Cisco’s CEO, Chuck Robbins, and Daisy Chittilapilly, President of Cisco India.

The successful creation of the Chennai facility, which brings cutting-edge telecom technologies capable of connecting individuals in India and beyond, has been made possible by this collaboration with Flex. This marks a significant milestone in the 25-year-long partnership between Cisco and Flex, enhancing manufacturing capabilities worldwide with efficiency, resilience, and sustainable practices,” the company added.

Looking ahead, Cisco plans to focus on producing advanced printed circuit board (PCB) assemblies and industrial-grade products designed to endure harsh environmental conditions. Additionally, the facility will handle the production of complex products, incorporating thousands of individual components to cater to the requirements of cutting-edge networking equipment.

However, amid this expansion, Cisco is also navigating the challenges of declining demand due to the global economic downturn, prompting cost-saving measures such as workforce reductions. According to TechCrunch, the company recently laid off over 5,000 employees, marking its second round of layoffs this year, as part of broader efforts to manage costs amid shifting market dynamics.