May 30, 2024

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With an investment of $700 million, iPhone makers are planning to grow in India.

According to a report, Apple Inc. partner Foxconn Technology Group intends to spend around $700 million on a new production plant in India to increase local production, reflecting an accelerated movement of production out of China due to the rise of Washington-Beijing tensions.

The factory may also construct Apple’s handsets, some of the sources said, and Foxconn may additionally utilise the site to generate some parts for its developing electrical vehicles business.  The plants for the production of the iPhone are planning to build parts on a 300-acre site close to the airport in Bengaluru, the capital of the southern Indian state of Karnataka.

The investment, one of Foxconn’s largest single expenditures in India to date, highlights how China is in danger of losing its position as the top maker of consumer electronics worldwide. In order to find alternate sites, such as India and Vietnam, Apple and other US firms are relying on their Chinese-based suppliers. It’s a rethinking of the global supply chain that has been pushed by the pandemic and the conflict in Ukraine and might alter how electronics are produced globally.

The new manufacturing facility in India is anticipated to generate roughly 100,000 jobs, the sources claim. Currently, the business employs about 200,000 people at its massive iPhone assembly facility in Zhengzhou, China, though that figure rises during the busiest production period.

The decision by Foxconn would be a victory for Modi’s administration, which sees it as a chance to close India’s technological gap with China as Western investors and corporations become weary of Beijing’s crackdowns on the private sector.

For example, Foxconn, which started producing the most recent iPhones at a facility in Tamil Nadu last year, has received financial incentives from India. While vendors like Jabil Inc. have started producing Air Pods parts locally, smaller competitors like Wistron Corp. and Pegatron Corp. have also increased their presence in India.