Foxconn Technology Group (Apple Inc’s main supplier), plans to increase its investments to more than $1.2 billion in Karnataka and add two component factories there, expanding a steady diversification from China to mitigate the risks of US economic and technology sanctions.
According to sources acquainted with the situation, at least one of the facilities that the Taiwanese business proposes to develop in Karnataka would be dedicated to the production of Apple components, including those for iPhones.
Skeptics indicated that an official announcement would come as soon as this week, but declined to be identified as the matter was not public knowledge. The second plant will likewise be in Karnataka; However, the exact location of this plant has not yet been selected.
According to a recent Bloomberg report, Foxconn plans to invest an additional $500 million in these two complexes in addition to the $700 million facility it plans to develop on a 300-acre site adjacent to the airport in Bengaluru. Karnataka state in India.
The facility will build almost all iPhones and is expected to create about 100,000 new jobs.
A significant investment for the Taiwanese business, which typically assembles most gadgets in central and southern China for Apple and other US brands, the new spending expected for India by Apple's partner will now exceed $1.2 billion as a result of the additional locations.
Foxconn's recent operations in India have seen the South Asian nation of India fast becoming a popular destination for manufacturers looking for an alternative to China in light of rising tensions between the United States of America and the People's Republic of America. China.
This is a consequence of the change in the global supply chain that has increased during the outbreak of COVID-19 and the crisis in Ukraine. This movement in the supply chain could redefine the way electronics are manufactured.
A request for comment from Apple was not met with a response from the company. An email to Foxconn requesting comment was not answered. Outside regular working hours, the Karnataka state administration did not respond when contacted for comment.
As a result of Prime Minister Narendra Modi's initiative to encourage more domestic production, Apple suppliers such as Foxconn have seen significant growth in their operations in India over the past few years.
Both Foxconn and Pegatron Corp., another Taiwanese company that competes with Foxconn to a lesser extent, now have iPhone assembly facilities in the Indian state of Tamil Nadu. Other governments, such as Karnataka, are also trying to lure businesses by making quick decisions, reducing the amount of bureaucratic red tape and offering financial incentives.
