Foxconn, the world's largest contract electronics manufacturer and principal assembler of Apple iPhones has announced its acquisition of a 1.2 million-square-metre tract of land in Devanahalli, near the airport for Indian tech hub Bengaluru. The move is part of Foxconn's efforts to diversify its production away from China, where much of its manufacturing is based. The acquisition was made through its subsidiary, Foxconn Hon Hai Technology India Mega Development, which paid three billion rupees ($37 million) for the site. In addition to India, Foxconn is also acquiring land use rights to a 480,000-square-metre site in Vietnam's Nghe An province.
This move follows reports that Apple plans to manufacture iPhones at a new plant in Karnataka, creating approximately 100,000 jobs, said an AFP report. Bloomberg News reported in March that Foxconn was planning to invest $700 million in a new factory in Karnataka, citing unnamed sources. Foxconn's chairman, Young Liu, visited the state in March to deepen partnerships and seek cooperation in new areas such as semiconductor development and electric vehicles. During his visit, Liu met with Prime Minister Narendra Modi to discuss enhancing India's tech and innovation eco-system.
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Foxconn has been manufacturing Apple handsets in India since 2019 at its plant in the southern state of Tamil Nadu. Two other Taiwanese suppliers, Wistron and Pegatron, also manufacture and assemble Apple devices in India. Apple has been expanding its manufacturing footprint in India and announced last September that it would manufacture its latest iPhone 14 in the country, which shows that the company is eager to make its latest devices in the Indian market.
The expansion of manufacturing in India by both Foxconn and Apple is a boost to Modi's "Make in India" strategy, under which he has urged foreign businesses to manufacture goods in the South Asian nation. India is home to the second-highest number of smartphone users in the world, after China and the country accounted for seven percent of Apple's iPhone production last year, according to Bloomberg. The move by Foxconn and Apple to diversify production away from China comes as both companies seek to reduce their reliance on China due to strict Covid policies and ongoing diplomatic tensions with the US.
