Foxconn Technology Group has received approval to invest at least an additional $1 billion in a plant under construction in India, which will be dedicated to manufacturing Apple Inc. products. This move represents a significant expansion in Foxconn’s efforts to establish a manufacturing hub beyond China.
All About the Foxconn Investment
The Taiwanese company, renowned as the largest assembler of iPhones, plans to allocate the new funds on top of the initial $1.6 billion earmarked for the 300-acre facility near Bengaluru’s airport. Insiders familiar with the matter indicate that the extra capital will support increased production capacity for Apple devices, likely including the iPhone.
With this latest approval, Foxconn is set to commit approximately $2.7 billion to transform the site into a central component of its manufacturing operations in India. This development underscores the broader trend of manufacturing companies, including Foxconn, redirecting capacity away from China, given the economic challenges and U.S. tensions facing the country.
It is a pivotal manufacturing partner for Apple, has already revised its budget for the plant upwards earlier in 2023. Initially planning a $700 million investment earlier in the year, the company has steadily increased its commitment. While a substantial portion of the new investment is dedicated to Apple, Foxconn may utilise some funds and the facility for manufacturing devices and components, potentially including electric vehicle parts, for other clients.
The Karnataka government confirmed on December 12 that it had granted approval for an additional 139.11 billion rupees ($1.7 billion) in overall Foxconn investments in the state. However, specific details were not provided. There are indications that the facility could also be used for producing components for Foxconn’s burgeoning electric vehicle (EV) business, as reported by Bloomberg News in March.
Notably, Apple’s partners are intensifying their efforts to establish a robust supply chain in India, coinciding with a time when Chinese companies are recalibrating their presence due to strained relations between Beijing and New Delhi. Another Apple partner, India’s Tata conglomerate, is actively working towards constructing one of the country’s largest iPhone assembly plants in Tamil Nadu.
Furthermore, India’s increased regulatory scrutiny of smartphone manufacturers like Xiaomi Corp. and Vivo has led some Chinese companies to hesitate in setting up operations in the world’s second-largest smartphone market. Representatives from Foxconn and Apple have not responded to requests for comment on these developments.
