Prime Highlights :
Foxconn to invest $1.5 billion for ramping up India manufacturing.
Part of Apple’s bigger strategy to diversify production out of China.
Key Facts :
Investment is being done through Hon Hai Technology India Mega Development Pvt Ltd.
Includes addition of more staff and new factory setup in south India.
Full Report :
Taiwanese technology giant Foxconn has announced it will put in $1.5 billion to expand its footprint in India. It will be done in its wholly owned subsidiary, Hon Hai Technology India Mega Development Pvt Ltd. The decision is being made when the company has been focusing increasingly on India as a strategic manufacturing hub, especially following geopolitical tensions and supply chain disruptions worldwide.
The $1.5 billion will be used to create infrastructure, build new manufacturing plants, and build better logistics support systems. The money will also fuel the growth of Foxconn’s Indian workforce, doubling it by 2024. Foxconn is already deeply committed to making Apple iPhones in India, and the new announcements will further increase local manufacturing capacity significantly.
This business decision aligns with Apple’s grand plan of increasing its supply base and stepping up manufacturing outside of China. India has been leading the charge, most notably through India’s Production Linked Incentive (PLI) scheme that offers an incentive for electronics manufacturing. Foxconn’s action will be helping Apple achieve its ‘Make in India’ ambitions on a bigger scale so that it can manufacture newer generation iPhones and maybe other product lines locally.
The new units will probably be established in states such as Karnataka and Tamil Nadu, where Foxconn has established a presence. Both the states possess a talent pool with high capabilities, favorable policies, and a mature industrial ecosystem. Foxconn’s growth will also result in other foreign suppliers and players of the ecosystem establishing themselves in India, making India a key player in the world electronics supply chain.
