Foxconn, the primary manufacturer of Apple iPhones, is set to invest $1.5 billion in India, marking a significant move in the Taiwanese company’s strategy to broaden its presence in the South Asian market. The company has outlined that this new investment plan is aimed at addressing various operational needs.
This development comes on the heels of Foxconn’s announcement two months ago, where it expressed its intention to double investments and expand its workforce in the Indian market. This move is part of the company’s strategy to diversify its manufacturing hubs, lessening its direct reliance on China, as reported by Reuters.
While Foxconn consistently increased its investments in the Chinese market over a 15-year period, from 2001 to 2017, it has been gradually reducing its engagement since 2018, driven by the intensifying trade tensions between the United States and China. The company has affirmed its commitment to sustaining investments in the Indian market, underscoring the significance of aligning with the Indian government’s “Make in India” initiative to achieve substantial diversification in its local market relationships.
In August of the previous year, Foxconn disclosed investments totaling $60 million in two projects located in southern Karnataka, India. These projects are designed to cater to chip manufacturing machines and produce components for iPhone structures. Notably, the production of iPhone 15 commenced in India this year, simultaneously with its manufacturing initiation in China, marking a departure from the traditional prioritization of manufacturing in China.
In 2022, Apple, in a strategic move, announced an expanded reliance on India for iPhone manufacturing. This decision, coinciding with the launch of the iPhone 14, reflects Apple’s recognition of India as a distinctive and reliable manufacturing center, signaling a deliberate effort to reduce dependence on Beijing.
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