Foxconn Technology Group, a partner of Apple Inc., is planning to invest $700 million in a new plant in India to ramp up local production, according to people familiar with the matter.
The move underscores the growing trend of manufacturers shifting production away from China due to the escalating tensions between Washington and Beijing.
Investors King understands that the new plant will be built on a 300-acre site close to the airport in Bengaluru, the capital of the southern Indian state of Karnataka. According to Foxconn, the factory would be used to manufacture iPhone parts and may also be used to assemble Apple’s handsets.
The company also noted that may also be used to produce parts of Foxconn’s electric vehicle.
This investment marks one of Foxconn’s biggest single outlays in India and highlights China’s potential to lose its position as the world’s largest producer of consumer electronics. As the pandemic and the war in Ukraine accelerated the rethink of the global supply chain, Apple and other US brands are looking to explore alternative locations such as India and Vietnam.
The new production site in India is expected to create approximately 100,000 jobs, with Foxconn’s sprawling iPhone assembly complex in the Chinese city of Zhengzhou employing around 200,000 at present. The output at the Zhengzhou plant recently decreased due to Covid-related disruptions, prompting Apple to reassess its China-reliant supply chain.
Foxconn’s decision is the latest move in the ongoing trend of suppliers moving capacity out of China at a faster rate than expected. This shift could reshape the way global electronics are made and solidify India’s position as a key player in the global supply chain.
