Deccan Chronicle

Foxconn Group plans to invest $500 mn

- — Bloomberg

Taipei, August 1: Apple Inc.’s main supplier, Foxconn Technology Group, plans to increase its investment­s to more than $1.2 billion in southern India’s Karnataka state and add two component factories there, expanding a steady diversific­ation from China to mitigate the risks of US economic and technology sanctions.

At least one of the factories that the Taiwanese company plans to construct in Karnataka will produce Apple parts, including for iphones, people familiar with the matter said. A formal announceme­nt is expected as early as this week, the people said, declining to be named as the matter isn’t public. The second plant will also be in Karnataka, but their exact location has yet to be decided.

Foxconn is spending $500 million on these two complexes on top of a $700 million facility it aims to build on a 300-acre site close to the airport in Bengaluru. That plant is likely to assemble iphones and is expected to create about 1,00,000 jobs.

The additional sites will bring the Apple partner’s envisioned new spending for India north of $1.2 billion, a big outlay for a Taiwanese company that traditiona­lly assembles the vast majority of devices for Apple and other US brands from central and southern China.

Foxconn’s moves in India highlight how the South Asian nation has fast become a popular destinatio­n for manufactur­ers scouting for an alternativ­e to China amid growing tensions between Washington and Beijing. It’s also the result of a shift in the global supply chain that accelerate­d during the Covid-19 pandemic and war in Ukraine, and could reshape the way electronic­s are made.

Apple didn’t reply request for comment. Foxconn didn’t respond to an email for comment. The Karnataka state government didn’t respond to a request for comment outside of business hours.

Apple suppliers such as Foxconn have ramped up business in India over the past few years thanks to Prime Minister Narendra Modi’s incentives to boost local manufactur­ing. Foxconn and smaller Taiwanese rival Pegatron Corp. now both operate iphone assembly facilities in Tamil Nadu.

COMPANY’S MOVES highlight how India has fast become a popular destinatio­n for electronic manufactur­ers scouting for an alternativ­e to China amid growing tensions between Washington and Beijing.

Newspapers in English

Newspapers from India