- The plant in India will have 100,000 employees.
- Foxconn wants to move iPhone manufacturing to India to leave China as one more option, and not the only alternative.
- The investment would exceed 700 million dollars.
Taiwan-based Foxconn Technology Group will build a plant near the airport in Bangalore, the capital of India’s Karnataka state, where it hopes to make Apple’s flagship iPhone, as well as parts for electric cars.
The new plant, which is estimated to employ 100,000 people, will serve as part of Foxconn’s strategy to shift production from China to other countries with fewer controls and less confrontation with the United States.
Foxconn’s complex in Zhengzhou, China, employs about 200,000 workers in the peak production season.
The world’s largest iPhone maker and Apple partner plans to invest around $700 million.
The investment by the Taiwanese company, also known for its flagship unit Hon Hai Precision Industry, will be the largest outlay to date in India and shows how China is at risk of losing its status as the world’s biggest producer of consumer electronics.
Apple, like other US brands, is pushing its suppliers in China to explore other alternative countries, such as India and Vietnam.
This is a rethinking of the global input supply chain that began a few years ago but accelerated in the pandemic and the conflict in Ukraine.
What comes out of these changes will reshape the way global electronics are made.
The “Made in India” is strengthened in the iPhone
We must remember the serious production problems that the Zhengzhou plant had in October, when there were interruptions related to the Chinese “zero covid” strategy.
Foxconn’s decision is the clearest indication that suppliers to big US firms are moving their production out of China much faster than anticipated.
According to calculations of SCMPonce the relocation of some of the big manufacturers’ plants is completed it could increase India’s share of iPhone assembly to 10 to 15 percent.
Foxconn’s decision would be a great success for the Modi government in India, which sees in these transfers an opportunity to close that country’s technology gap with China.
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