Apple Inc. partner Foxconn Technology Group plans to invest approximately $700 million in a new plant in India to boost local production, highlighting an accelerated transfer of manufacturing away from China as Washington-Beijing tensions rise.se.
The Taiwanese corporation, well known for its flagship unit Hon Hai Precision Industries Co., aims to develop the plant to create iPhone parts on a 300-acre property near the airport in Bengaluru, the capital of the southern Indian state of Karnataka.
The investment is one of Foxconn’s greatest single outlays in India to date, highlighting how China is in danger of losing its position as the world’s top maker of consumer electronics. Apple and other American companies are relying on their Chinese suppliers to investigate alternate sites such as India and Vietnam. It is a rethinking of the global supply chain that has been expedited by the epidemic and the war in Ukraine, and it has the potential to transform the way global electronics are manufactured.
The new manufacturing facility in India will create approximately 100,000 employments. The company’s huge iPhone assembly complex in the Chinese city of Zhengzhou currently employs around 200,000 people, though that figure rises during peak production season.
India has provided financial incentives to Apple suppliers such as Foxconn, which began manufacturing the latest generation of iPhones last year at a plant in Tamil Nadu. Smaller rivals Wistron Corp. and Pegatron Corp. have also increased their presence in India, while suppliers such as Jabil Inc. have begun producing AirPods components locally.