Foxconn may invest $ 700 million in setting up new production plant in India

3 Mar 2023 , 11:19 AM

According to sources, Apple Inc. partner Foxconn Technology Group plans to invest about $700 million in a new plant in India to ramp up local production, highlighting an accelerating shift of manufacturing away from China as Washington-Beijing tensions rise.

The Taiwanese firm, also known for its flagship unit Hon Hai Precision Industry Co., intends to construct the iPhone-parts manufacturing plant on a 300-acre site near the airport in Bengaluru.

According to some sources, the factory may also assemble Apple’s handsets, and Foxconn may use the site to produce parts for its nascent electric vehicle business.

The investment is one of Foxconn’s largest single outlays in India to date, highlighting how China is in danger of losing its position as the world’s largest producer of consumer electronics. Apple and other US companies are relying on their Chinese suppliers to investigate alternative locations such as India and Vietnam.

It is a rethinking of the global supply chain that has been accelerated by the pandemic and the war in Ukraine, and it has the potential to reshape the way global electronics are manufactured.

According to the sources, the new manufacturing facility in India will create approximately 100,000 jobs. The company’s sprawling iPhone assembly complex in the Chinese city of Zhengzhou currently employs around 200,000 people, though that figure rises during peak production season.

The decision by Foxconn would be a breakthrough for Modi’s government, which sees an opportunity to close India’s technological gap with China as Western investors and corporations turn against Beijing’s crackdown on the private sector.

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