Foxconn, a Taiwanese multinational electronics contract producer, and an Apple partner purchased land in the Devanahalli neighborhood near the Bengaluru airport on Monday for 1.2 million square meters, or 13 million square feet. According to the news agency AFP, Hon Hai Technology India Mega Development paid $37 million for the property, a Foxconn subsidiary, in accordance with a statement the company filed with the London Stock Exchange (LSE).
Foxconn and Apple’s recent land acquisition in Bengaluru can be considered a component of their efforts to branch out from China. India, the country with the largest population in the world, accounts for 7% of Apple’s iPhone output, therefore the company is trying to increase its manufacturing presence there. Both businesses are seeking outside of China for production sites because of COVID-related limitations and China’s poor relations with the US.
Not only that, but the chief minister of Karnataka, Basavaraj Bommai, declared in March that the biggest firm in the world by market value would “soon” open a new plant in the state and employ almost 100,000 people to produce iPhones. In a statement, Foxconn Chairman Young Liu claimed that his visit to Karnataka in the same month was intended to “deepen partnerships… and seek cooperation in new areas including semiconductor development and electric vehicles.”
Apple’s Indian manufacturing push
A larger number of facilities are located in India, notably one in Tamil Nadu where Foxconn, a Taiwanese multinational electronics contract manufacturer, has been making Apple mobile devices since 2019. Two more Taiwanese electronics firms, Wistron and Pegatron, also manufacture and assemble Apple goods in India. Another Apple supplier, Jabil Inc., has reportedly begun making Apple AirPods components in India, according to a Bloomberg article.
The change occurred after Apple CEO Tim Cook stated that India is a key focus for the business. During the tech giant’s earnings call last week, Cook stated: “Looking at the company in India, we did establish a quarterly record, expanded very well, double digits over the year. Therefore, it was a wonderful quarter for us; in retrospect, India is a really attractive market. It’s a major focus for us”.
“I genuinely feel that India is at a tipping point, and it’s amazing to be there,” he continued. “There are a lot of people entering the middle class. Tim Cook met Prime Minister Narendra Modi during his visit to India, and the two vowed to increase trade and investment there. India’s tech and innovation eco-system was the main topic of his conversations with Prime Minister Modi.
Local iPhone manufacturing and exporting were the main subjects of conversation when Rajeev Chandrasekhar and Tim Cook met. The main subject of conversation between Tim Cook and Ashwini Vaishnaw’s meeting was how to increase Apple’s involvement in India’s manufacturing, electronics exports, app economy, skill development, sustainability, and job creation, especially for women. Tim Cook inaugurated Apple’s first two retail locations last month in the Select Citywalk Mall in Saket, Delhi, and Jio World Drive in Mumbai’s Bandra Kurla Complex (BKC).
