Over the last year, Foxconn has significantly strengthened its presence in India by channeling substantial investments into manufacturing facilities in the southern region. The tech giant, renowned as the world’s largest contract manufacturer and responsible for assembling approximately 70% of iPhones globally, is strategically diversifying its manufacturing hub beyond China. This shift is in response to disruptions caused by the COVID-19 pandemic and escalating geopolitical tensions.
Foxconn Technology Group has recently received approval to inject a minimum of $1 billion more into its upcoming plant in India, specifically earmarked for the production of Apple products. This significant increase represents a major step in its strategic pursuit to establish a crucial manufacturing hub outside of China, as reported by Bloomberg. The development follows the Karnataka state government’s confirmation of a $1.67 billion investment, solidifying Foxconn’s commitment to expanding its operations in the region.
Over the past year, Foxconn has directed substantial investments toward manufacturing facilities in the southern part of India. In Karnataka state, the company unveiled plans for a $600 million investment in August, spanning two projects aimed at producing casing components for iPhones and specialized chip-making equipment. The anticipated commencement of iPhone production in the southern state is set for April 2024, generating approximately 50,000 job opportunities. The recently secured funds are expected to support expanded capacities for various Apple devices, potentially including the iconic iPhone.
With this latest injection of capital, Foxconn’s total investment in the site will amount to approximately $2.7 billion, solidifying its position as a cornerstone in the company’s manufacturing landscape in India. This mirrors a broader trend observed among manufacturing giants, including Foxconn, as they redirect capacities away from China amidst economic challenges and heightened tensions with the United States.
As a crucial manufacturing partner for Apple, Foxconn has revised its investment plans for the plant at least once this year. Originally slated for a $700 million investment at the beginning of 2023, this substantial augmentation underscores the company’s commitment to meeting the demands of its crucial partnership with Apple. While the investment is primarily designated for Apple products, a portion is likely to be utilized for manufacturing devices and components, including electric vehicle parts, for other clients.
This move by Apple’s key partners reflects an accelerated push to establish a robust supply chain within India. It coincides with a gradual departure of Chinese firms amid strained relations between Beijing and New Delhi. Another prominent Apple collaborator, the Tata conglomerate, is actively pursuing the establishment of one of India’s largest iPhone assembly plants in Tamil Nadu.
In conclusion, Foxconn’s significant investment in India underscores its commitment to diversifying its manufacturing operations and reducing dependency on China. This move aligns with broader industry trends as companies seek to establish resilient and diversified supply chains in the face of global challenges and geopolitical uncertainties.
