Foxconn to Invest $1 Billion in India Amid Strong Push From Apple

Apple supplier Foxconn plans to invest $1 billion in India to expand a factory that assembles iPhones, reports Reuters.

foxconn

One source told Reuters that Apple has been pushing Foxconn and other suppliers to move production outside of China. The move will ultimately help the company in diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing amidst the ongoing trade war between China and the United States.

Foxconn's investment is being made in the Sriperumbudur plant, which is responsible for producing some iPhone XR models. The improvements, which will take place over three years, include the addition of 6,000 new jobs and the production of other ‌iPhone‌ models in the plant.

Should Apple's supply chain expansion into India prove successful, the company may begin using the country as an "export hub."

With India’s labour cheaper compared with China, and the gradual expansion of its supplier base here, Apple will be able to use the country as an export hub,” Neil Shah of Hong Kong-based tech researcher Counterpoint said.

Apple is rumored to be expanding its presence in India by introducing an online Apple Store in the third quarter of 2020. The company is also reportedly working on opening retail locations in the country beginning with a store in Mumbai.

Tags: Foxconn, India

Top Rated Comments

mi7chy Avatar
50 months ago

Foxconn is a Chinese company. So the profits will still go to the PRC, even if the assembly line jobs go to India.
Check your facts. Foxconn is a Taiwanese company and founded by a Taiwanese. Just because they have facilities elsewhere in the world doesn't change that.

https://en.wikipedia.org/wiki/Foxconn

This is an opportunity for India. Hope they make the most of it.
Score: 23 Votes (Like | Disagree)
gleepskip Avatar
50 months ago
This is the news we want to hear. I'm sick of CCP controlling our companies, entertainment, politics, and health.
Score: 22 Votes (Like | Disagree)
mannyvel Avatar
50 months ago
Supply chain diversification: it's not just a good idea, it's the prudent thing to do, especially if you have the money to do so.

One day the PRC will collapse, the way governments in China do. The CCP can't avoid the wheel of history. Apple needs to ensure it can survive that event.
Score: 19 Votes (Like | Disagree)
tn-xyz Avatar
50 months ago

so people of color in america are not worthy enough for apple to invest 1 billion for a new factory? no american jobs? no equity? I see
i hate to break it to you, but that’s not how capitalism and profit maximization work.
Score: 13 Votes (Like | Disagree)
jayducharme Avatar
50 months ago
It's not how much the iPhones actually cost in India but rather how much people want them. Just as in the US, if Apple is perceived to be a luxury brand in India, then the people who can afford iPhones will buy them and others won't. But this move seems to be less about selling to the Indian market and more about strengthening their global supply chain. Since Apple needs to make their products in India to sell to that market anyway, it's a win-win.
Score: 8 Votes (Like | Disagree)
citysnaps Avatar
50 months ago

iphone still too expensive for the avg indian consumer, especially when huawei and chinese brands cost half or even 1/3 as much.
That's OK. The primary motivation is Apple wanting to move some production out of China.
Score: 6 Votes (Like | Disagree)

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