In a major boost to the Indian manufacturing sector, Apple supplier Foxconn Technology Group has announced its plans to invest over $700 million in a new manufacturing facility in Bengaluru, Karnataka. This move is said to be the company’s biggest-ever outlay in India and is expected to create over 100,000 jobs in the country.
The new facility, which will be set up on 300 acres of land near the Bengaluru airport, will produce iPhone parts locally and work on Foxconn’s electric vehicle business. According to sources familiar with the matter, the Taiwanese manufacturing giant plans to make iPhone parts on this plant, marking a significant shift from its reliance on Chinese production.
With growing tensions between the USA and China, Foxconn is looking to diversify its manufacturing base, and India has emerged as a preferred destination. The government’s incentive scheme has further boosted Foxconn’s confidence in the country’s manufacturing capabilities.
This move comes after Foxconn faced disruptions in its production facilities in China due to COVID-related guidelines, which led to a shortage in the supply of iPhone 14 Pro and impacted sales in the year-end sales. By ramping up local production in India, Foxconn is looking to ensure a steady supply of iPhone parts and meet the increasing demand for Apple products in the region.
Apple’s iPhones are already assembled in India by three of its global suppliers – Foxconn and Pegatron in Tamil Nadu, and Wistron in Karnataka. With this new investment, Apple’s production in India is set to increase, and the state’s investment promotion division has stated that the move will generate 100,000 employment opportunities in the next 10 years.
Apple and Foxconn are yet to respond to requests for comment on this Bloomberg report, but this move is undoubtedly a positive development for India’s manufacturing industry. With Foxconn’s continued investment in the country, India is set to emerge as a significant manufacturing hub, creating employment opportunities and boosting the economy.
