iPhone maker Foxconn decides $700 Million plant in Bengalurutext_fields
New Delhi: Foxconn Technology Group, leading maker of iPhones, is planning to invest about $700 million on a new plant in India, Bloomberg reports.
The Taiwanese company’s move signals that major companies are likely to shift manufacturing away from China.
This comes in the backdrop of increasing tension between Washington and Beijing recently.
Foxconn Technology Group plans to build the plant to make iPhone parts on a 300-acre site in the vicinity of the airport in Bengaluru.
As well as assembling Apple’s headsets, Foxconn will devote the site to manufacture some parts of its upcoming electric vehicle venture.
This is going to be one of Foxconn’s biggest single investment in India which also suggests that China is at risk of losing the title of being the world’s manufacturing hub.
Major US brands are considering finding alternative locations in India and Vietnam; this comes particularly in the aftermath of Covid crisis and the on-going Ukraine war.
While its site in China employs 200,000 at the moment, the new site in India will offer about 100,000 jobs, according to the report.
Apple reconsidered its China-reliant supply chain after output at Zhengzhou plant went down from Covid-related issues and the year-end holidays.
It is not yet clear if the proposed site is a new capacity or Foxconn is shifting production from other sites such as its Chinese facilities.
Foxconn's decision to set up factory in India will boost Modi government’s make in India initiative.