Apple supplier puts $500m in India plant

Apple Inc’s supplier, Foxconn, has announced a $500 million investment to establish manufacturing plants in the southern Indian state of Telangana, according to the state’s IT minister, K. T. Rama Rao. This investment is expected to generate 25,000 job opportunities in the initial phase. The move comes after previous reports in March indicated that Foxconn had secured a contract to produce AirPods for Apple and intended to construct a factory in India for this purpose.

The decision to expand production in India aligns with Apple’s strategy of diversifying its manufacturing operations beyond China. Disruptions caused by COVID-19 restrictions in China had previously impacted the production of iPhones and other Apple devices. Furthermore, the company aims to reduce potential business risks arising from the escalating tensions between Beijing and Washington.

In late March, Foxconn obtained approval from the Karnataka government for a separate investment of $968 million in the state. These recent investments highlight Foxconn’s commitment to strengthening its presence in India’s manufacturing sector. The expansion of production facilities in Telangana and Karnataka will not only contribute to job creation but also support Apple’s efforts to enhance its supply chain and meet the growing demand for its products.

The Indian government has been actively promoting the country as an attractive destination for foreign investments in the technology sector. With its vast talent pool and relatively low manufacturing costs, India offers significant potential for companies like Apple and Foxconn to expand their operations and tap into the burgeoning consumer market in the region.