Foxconn to spend $500m on new factories in India

Apple’s main supplier, Foxconn Technology Group, is gearing up to make a substantial investment of nearly $500 million in building two component factories in India, according to a news report on Monday, citing insiders familiar with the matter.

The new factories are slated to be located in the southern state of Karnataka, and at least one of them will focus on manufacturing Apple parts, including components for iPhones. While the exact locations within the state are yet to be finalized, a formal announcement is anticipated to be made as early as this week.

Both Foxconn and Apple are yet to respond to media inquiries about the reported investment.

Karnataka has already demonstrated its appeal to Foxconn, with the state approving an investment of 80 billion rupees ($972.88 million) by a Foxconn unit back in March. This development makes Karnataka the third southern Indian state to welcome Foxconn plants, following Andhra Pradesh and Tamil Nadu.

Seeking to diversify its operations beyond China, Foxconn is making significant strides in expanding its footprint in India. As part of its investment drive in the country, the Taiwanese company has also inked a deal with Tamil Nadu to establish a new electronic components manufacturing facility worth 16 billion rupees. This project is expected to create around 6,000 job opportunities in the region.

The proposed Foxconn Industrial Internet facility will be situated in the Kancheepuram district near the state capital of Chennai. A source from the Tamil Nadu government revealed this information, choosing to remain anonymous as further details are yet to be made public.

By investing in these component factories in India, Foxconn aims to reinforce its supply chain capabilities for Apple products, ultimately contributing to Apple’s efforts to bolster its operations and presence in the Indian market. The move also aligns with India’s ambition to attract more foreign direct investment and foster a thriving manufacturing ecosystem in the country.

As the tech industry continues to evolve, this strategic investment by Foxconn is expected to have significant implications for India’s manufacturing landscape, making it an attractive destination for global technology companies looking to expand their production capabilities.