Apple supplier to build new plant

Foxconn Technology Group, a major supplier for Apple, plans to invest around $700 million in building a new plant in India, which could indicate a shift in the iPhone manufacturing industry away from China, according to reports. The development also signals the risk of China losing some of its production capacity for consumer electronics to countries such as India and Vietnam, as tensions between China and the US deepen.

The new 300-acre facility, located near the airport in Bengaluru, will produce iPhone parts and assemble Apple headsets, although it remains unclear whether the Indian site will represent added capacity or replace some that was shifted outside China. The plant will generate around 100,000 jobs, which is still far fewer than the headcount at Foxconn’s Chinese operations.

Foxconn has been producing iPhone 14 in India since last year, while the Indian government has aimed to boost financial incentives for some electronics manufacturers. The company’s latest investment could further boost India’s standing as a destination for electronics manufacturing and potentially reduce Apple’s reliance on China.

Foxconn is not the only company moving towards India as a manufacturing base. Last year, Pegatron, another Apple supplier, announced a $150 million investment in India to assemble iPhones. In addition, Samsung Electronics recently decided to shut down its only TV factory in China and shift production to Vietnam, as the Korean electronics manufacturer sought to shift production to lower-cost countries.