Foxconn to build $500 million worth of component factories in India

1 Aug 2023 , 01:58 AM

Foxconn Technology Group, Apple’s primary supplier, is to increase its investments in southern India’s Karnataka state to more than $1.2 billion and open two additional component facilities there.

According to news reports, at least one of the factories that the Taiwanese business intends to build in Karnataka will manufacture Apple components, including those for iPhones. According to the reports, a formal announcement might be made as soon as this week. The location of the second plant, which would also be in Karnataka, is still to be determined.

In addition to a $700 million facility it plans to erect on a 300-acre site near the airport in Bengaluru, the capital of Karnataka, Foxconn is investing $500 million in these two facilities, according to a previous Bloomberg News article. It is anticipated that this plant will build iPhones and generate roughly 100,000 employees.

The extra locations will push the Apple partner’s anticipated new spending for India north of $1.2 billion, a significant investment for a Taiwanese company that typically sources the majority of its components from central and southern China to manufacture products for Apple and other US brands.

Foxconn and other Apple suppliers have increased their operations in India over the past few years as a result of incentives offered by Prime Minister Narendra Modi to encourage domestic manufacture. In the southern state of Tamil Nadu, Foxconn and its smaller Taiwanese rival Pegatron both run iPhone assembly plants. Other governments, like Karnataka, have also wooed businesses by making decisions quickly, reducing red tape, and offering subsidies.

Separately, the state’s industries ministry announced Monday that a Foxconn subsidiary had also signed an initial deal with the government of Tamil Nadu in the southern part of the country to establish its own components plant with an investment of Rs16 billion ($195 million). Approximately 6,000 jobs will likely be created by the project.

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