Foxconn Technology Group, a multinational electronics contract manufacturing company known for supplying components to various OEMs, has garnered attention with recent developments in its production landscape.
In the latest move, Foxconn is set to expand its production capabilities with a substantial investment of $1.54 billion in India, reflecting its ongoing commitment to growth in the South Asian market.
According to TechCrunch, Foxconn stated that this investment is geared towards meeting its “operational needs.” This initiative aligns with Foxconn’s broader expansion plan, announced two months ago, which includes doubling its workforce and investment in India by the following year.
Foxconn’s collaboration extends to many tech firms, including Apple, for whom it already assembles devices in Indian plants. This strategic move is part of a broader trend in the industry, coined as “China+1,” where tech giants seek to diversify their manufacturing base by incorporating India into their production processes.
As a major supplier for Apple, Foxconn plays a critical role in manufacturing iPhones, including the latest iPhone 15 series. The investment in India signifies a shift in focus as Foxconn’s expansion into China experienced notable growth from 2001 to 2017 but slowed down after 2018 amid the US-China trade tensions.
Foxconn has already outlined multiple projects within India, such as a $600 million initiative in Karnataka and a $500 million factory in Telangana state. This heightened emphasis on India, coupled with Apple’s diversification strategy, raises the prospect of doubling iPhone production in India by 2024.
In recent years, India has emerged as a significant player in high-tech manufacturing and assembly, attracting major players like Apple, aiming to reduce dependence on China. This realignment resonates with the Indian government’s push to bolster local manufacturing and technology sectors.