Foxconn, Apple’s largest partner, Taiwan, plans to invest at least $1 billion in an additional Indian plant under construction, Bloomberg reported on the 13th, citing sources familiar with the matter. Bloomberg reported the news and said, “It is an additional investment in the $1.6 billion investment in the Indian plant in Karnataka.” The source, who asked not to be named, explained that Foxconn’s additional investment is for the production of additional Apple devices, including iPhones.
Foxconn, which is responsible for 70 to 80 percent of the world’s iPhone production, has been making Apple products in China. However, due to the Chinese authorities’ high-intensity quarantine policy “Manufacturing COVID-19” to prevent the spread of COVID-19, the largest iPhone manufacturing plant in China has been closed, which has disrupted production plans. Since then, Apple and Foxconn have begun distributing supply chains outside of China to prevent production disruptions from recurring due to the factory shutdown.
Foxconn already operates more than 30 factories in India and employs tens of thousands of people. Its annual sales also amount to about $10 billion. An iPhone production plant has been established in Tamil Nadu in southern India, employing 40,000 workers. Apple’s latest smartphone, the iPhone 15 ′, was recently manufactured at the plant.
Last month, Foxconn announced a plan to invest an additional $1.6 billion in India to diversify its production sites. Bloomberg said, “With this additional investment, Foxconn will pour about $2.7 billion to establish a production facility in Karnataka. This shows that Foxconn and other manufacturing companies are speeding up their plans to de-China to respond to China’s economic slowdown and intensifying tensions with the United States.”
Meanwhile, Apple plans to produce more than 50 million iPhones in India every year in the next two to three years. The Wall Street Journal quoted multiple sources as saying, “If the plan becomes a reality, India will account for a quarter of the world’s iPhone production.” Last year, India’s iPhone production accounted for about 7 percent of the total.
JENNIFER KIM
US ASIA JOURNAL
