Apple supplier Foxconn will reportedly invest an additional $1.67 billion to establish the upcoming plant in Karnataka, a day after the state government approved the Taiwan-based company on the same.
Foxconn assembles around 70% of iPhones and it is the world’s largest contract manufacturer. The company has been working to diversify its production capacity in a bid to lower its reliance on China following COVID-19 disruptions and geopolitical tensions.
Foxconn’s strengthened footprint in India
Foxconn strengthened its footprint in India in the last twelve months, channelling substantial investments into manufacturing facilities in south India.
In August, the company announced an investment of $600 million in two projects in Karnataka. The company will make casing components for iPhones and chip-making equipment. Furthermore, Foxconn may also start manufacturing iPhones by April 2024 and is also expected to create around 50,000 jobs.
Citing sources, Bloomberg reported that the recently acquired funds are likely to support enhanced capacities for a range of Apple devices, which may include the iPhone.
Tata iPhone manufacturing plant
Meanwhile, Tata is also planning to build one of India’s biggest iPhone assembly plants in Hosur in Tamil Nadu. The facility is reported to have about 20 assembly lines and provide employment to 50,000 workers in two years. The goal for the site is to be operational in the next 12 to 18 months.
Apple is also looking to expand iPhone manufacturing in India to produce a fourth of the total iPhones in the country. The company aims to build additional tens of millions of units planned after taking further share toward the end of the decade.
Apple’s plans also align with the country’s ‘Make in India’ ambitions to become a major hub for electronics manufacturing.