Foxconn Technology Group has received approval to invest at least $1 billion more in its upcoming plant in India, which would manufacture Apple products. According to Bloomberg, this considerable rise represents a big step forward in its strategic ambition of establishing a pivotal manufacturing hub outside of China.
The news comes after the Karnataka state government confirmed a $1.67 billion investment, cementing Foxconn's commitment to expanding its operations in the region. The Taiwanese electronics behemoth, which is responsible for producing over 70% of iPhones worldwide and is known as the world's largest contract manufacturer, is committed to diversifying production beyond China. This turn is being made in reaction to the COVID-19 epidemic and rising geopolitical tensions. Foxconn has dramatically increased its footprint in India over the last year, allocating large investments towards manufacturing facilities in the country's south.
In August, the business announced plans for a $600 million investment in Karnataka state, covering two projects focused at creating casing components for iPhones and specialised chip-making equipment.
This project, which is expected to begin iPhone production in the southern state by April 2024, is expected to produce roughly 50,000 job possibilities. According to sources familiar with the situation, the newly obtained funds are likely to drive enhanced capacities for different Apple devices, potentially including the iconic iPhone, though details are being kept private because the information is not public.
Foxconn's investment in the facility would total around $2.7 billion with this latest injection of capital, establishing it as a cornerstone in the company's industrial environment in India. This underscores the trend seen among Foxconn and other industrial behemoths of shifting capacity away from China in the face of economic concerns and increased tensions with the US.
This year, Foxconn, Apple's primary manufacturing partner, has changed its investment plans for the factory at least once. Originally planned for a $700 million investment at the start of 2023, the significant increase demonstrates the company's dedication to meeting the needs of its critical alliance with Apple. While the investment is largely intended for Apple products, a portion of it is likely to be used to manufacture devices and components, including electric car parts, for other clients.
This move by Apple's main partners reflects an intensified attempt to develop a strong supply chain in India, which coincides with a gradual withdrawal of Chinese enterprises amid tense relations between Beijing and New Delhi. Another significant Apple collaborator, the Tata conglomerate, is actively seeking the building of one of India's largest iPhone assembly plants in Tamil Nadu.
