Foxconn Technology Group, a partner of Apple Inc., will establish a plant in India with an investment of $700 million to ramp production. It is planning to move its production away from China. It is against the backdrop of growing tensions between Beijing and the US.
A new plant on a 300-acre site in Karnataka, India
According to the latest BNN World News, the Taiwanese company has identified a 300-acre plot close to the Bangalore International Airport in Karnataka to establish its manufacturing plant. Foxxcon will produce parts for the iPhone in the southern Indian state. According to available information, the company will also assemble iPhones at this new plant. The company also has plans to manufacture EV parts at this plant to cater to the growing demand for electric vehicles.
It is the biggest investment by Foxxcon to date in India. It indicates that China will lose its position as the world’s largest manufacturer of consumer electronics. Some of the US brands and Apple are exploring alternative locations, such as Vietnam and India, to relocate their production from China. The ongoing war in Ukraine and the acceleration of the global supply chain during the coronavirus are expected to reshape how global electronics will be made.
Expects to create 100,000 jobs in Karnataka
According to the people familiar with the matter, Foxxcon’s initiative expects to create 100,000 jobs in the state of India. Around 200,000 people are working at the sprawling iPhone complex in Zhengzhou, a Chinese city. The number of employees at this facility will be much higher during the peak season.
Covid-related disruptions in this city have caused disruptions at this plant. It has caused Apple to rethink its dependency on China. The latest move by Foxconn suggests several suppliers are weighing moving their production facilities out of China. However, the plans of Foxxcon may change as it finalizes the project details and investment. It is still not known whether Foxconn is adding new capacity or planning to relocate its facilities from China.
Liu, a chairman of Hon Hai, met Narendra Modi, the Prime Minister of India, this week. Liu is also planning to establish another production plant in Telangana, a neighboring state of Karnataka. The decision of Foxxcon to establish production plants in two Indian states is a boon for Modi. The Indian government gets an opportunity to close the tech gap with its neighboring nation, China, because several investors and corporations from the west are not happy with the Chinese crackdown on private entities.
Attracts foreign companies with incentives
India is attracting foreign companies with incentives to establish their production plants. Some of the companies, including Foxxcon and Apple, commenced the production of iPhones in Tamilnadu, another southern state in India.
Smaller companies like Pegatron Corp. and Wistron Corp. have also chosen India for their business operations. Other suppliers, like Jabil Inc., have already started making AirPods in India. The growing rivalry between China and the US is benefiting India. In the most recent world news, the US is restricting exports of advanced chip-making equipment to China from countries like the Netherlands to prevent the development of military technologies.
