While Foxconn CEO Liu Young-Way recently reassured Chinese workers that he intends to maintain a huge manufacturing base in China, the company is building manufacturing capacity in India. A key manufacturing partner of Apple is investing $500 million to build a plant in Telingana state, India.
The new investment of more than $500 million will allow Foxconn to create 25,000direct jobs” only in “first phase» Project implementation. The company, which already makes iPhones in India, signed a deal earlier this year to launch AirPods in the country as well. She also bought land in Bangalore worth $37 million this month.
India’s Prime Minister Narendra Modi has offered significant financial stimulus to boost local industry in recent years, drawing the attention of Apple partners Foxconn, Wistron and Pegatron.
Foxconn has been operating in India since 2006, putting it years ahead of its competitors. Since then, the company has accumulated experience in managing local employees, organizing production chains and logistics, which ensures the rapid development of the business, the company said. In addition, the company intends to increase the production share of local companies.
According to Foxconn, the populous country is becoming an important potential market for mid-range and premium products. Therefore, there is a need to expand assembly and other business activities in India. In addition to the fact that more and more suppliers are entering the Indian market and building factories here, there are certain advantages in the local labor market, in particular low wages for workers. In addition, the company wants to apply for new government incentives to improve competitiveness.
The growing interest of Apple partners is also related to complex issues that are forcing the American company to expand the production infrastructure of its suppliers outside of China. Apple opened two flagship stores in India last month, and JP Morgan projects the company will be able to manufacture up to 25% of all iPhones in India by 2025.