Foxconn is investing another 500 million in Indian industry

Foxconn is investing another $500 million in Indian industry

Foxconn, which makes the vast majority of iPhones for Apple, has decided to invest another $500 million in Indian industry: the company wants to expand its factories – this region is gradually becoming an important hub for supplying components for Apple.

    Foxconn.  Image source: Associated Press

Foxconn. Image source: Associated Press

Foxconn’s Singapore subsidiary is investing $500 million in India’s Hon Hai Technology India Mega Development Private Limited, according to documents filed for the Taiwan Stock Exchange on Thursday. The new initiative follows Foxconn (aka Hon Pai) efforts to develop smartphone manufacturing in India. Apple’s main partner even started producing the latest iPhone generation in the country almost immediately after launch, something that hadn’t happened before.

Analysts predict that Apple aims to make India a global hub for smartphone manufacturing by 2025 as the US company gradually sheds its reliance on China, where it has been producing the vast majority of its devices for more than 10 years . In September, experts from JP Morgan said that Apple will shift 5% of total iPhone 14 production to India by the end of 2022 and expand production capacity in the country to 25% of all iPhones by 2025.

On Wednesday, Morgan Stanley experts made a similar assessment, saying that Apple intends to localize production of up to 10% of all iPhones in India over the next 2-3 years.

Foxconn recently signed an additional MoU with the Indian state of Gujarat to build a $20 billion semiconductor and display facility. Foxconn said the company will provide “technical know-how” and mining company Vedanta will fund the project. The state itself will offer subsidies for the capital costs and, most importantly, electricity for the project.

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