Foxconn Technology Group, maker of Apple’s iPhone, is reportedly planning to invest up to $700 million in a new factory in India, as it appears to want to boost production in the country while lowering demand amid rising tensions between Washington and Beijing. Reliance on Chinese factories. Citing sources, Bloomberg reported that the Taiwanese company may produce iPhone parts at a 300-acre site near Bengaluru, which could also help its still nascent electric vehicle ambitions.
Recently, many companies have been considering India as a large production hub for electronic component manufacturing. Global supply chains are currently largely dependent on China and its domestic situation and policies. But many U.S. brands — including Apple — are urging Chinese suppliers to diversify their hubs. Foxconn, for example, has a large factory in Zhengzhou that employs about 200,000 people, but its planned factory near Bengaluru is likely to create about 100,000 jobs there as well.
Covid-related factors negatively impacted production at the Zhengzhou facility, further emphasizing the need for centers in other countries. So, while the reported plans to build a factory near Bengaluru could provide a more stable line of operations, it could also serve as the basis for the company’s EV plans. Foxconn has shown off its first electric car, called the Model C, which will initially go on sale in Taiwan. In 2021, the company also announced a joint venture with Yulon Group to develop and manufacture electric vehicles. Some parts could be produced at the proposed Indian plant.
With firm plans to launch electric crossovers and smaller, more affordable EVs in the future, Foxconn’s foray into the world of mobility is likely to get a boost from India.
First published date: March 3, 2023 at 10:27 AM CST