Apple Inc. partner Foxconn Technology Group plans to invest about $700 million on a new plant in India to boost local production, people familiar with the matter said, seeking to shift manufacturing from China as Washington-Beijing tensions escalate. Underscored rapid change.
The Taiwanese company, also known for its flagship unit Hon Hai Precision Industry Co, plans to build a plant to make iPhone parts on a 300-acre site near the airport in Bengaluru, according to the people, who asked to be named. Told not to tell. The information is not public. Some said the factory could also assemble handsets from Apple, and Foxconn could also use the site to produce parts for its new electric vehicle business.
The investment is one of Foxconn’s largest single outlays ever in India and underscores how China is at risk of losing its position as the world’s largest producer of consumer electronics. Apple and other US brands rely on their Chinese-based suppliers to explore alternative locations such as India and Vietnam. It’s a rethinking of global supply chains that has accelerated during the pandemic and war in Ukraine and could reshape the way global electronics are manufactured.
The new production site is expected to create around 100,000 jobs in India, the people said. The company’s massive iPhone assembly complex in the Chinese city of Zhengzhou currently employs around 200,000, although that number swells during peak production seasons.
Production at the Zhengzhou plant fell ahead of the year-end holidays due to Covid-related disruptions, prompting Apple to re-examine its China-dependent supply chain. Foxconn’s decision is the latest move that suggests suppliers may be moving capacity out of China faster than expected.
The people said the plans could still change as Foxconn is in the process of finalizing investment and project details. It is also unclear whether the plant represents new capacity, or production that Foxconn is moving from other sites such as its Chinese facilities.
Apple declined to comment. Hon Hai, whose chairman Young Liu met Prime Minister Narendra Modi this week, did not immediately respond to an email seeking comment. The Karnataka government also did not immediately react. Liu, who is visiting India, has committed to another manufacturing project in Telangana.
Foxconn’s decision will be a coup for PM Modi’s government, which sees an opportunity to bridge India’s technology gap with China as Western investors and corporations grapple with Beijing’s crackdown on the private sector.
India has offered financial incentives to Apple suppliers such as Foxconn, which last year started making the latest generation of iPhones at a site in Tamil Nadu. Smaller rivals Wistron Corp. and Pegatron Corp. has also made inroads in India, while Jabil Inc. Suppliers like have started making parts for AirPods locally.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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