As part of its plans to expand its smartphone production capacity in India, Foxconn is ramping up its investment in the country. The world"s largest contract electronics maker is investing an additional $500 million into its India business in order to expand its factories in the South Asian market.
This market is becoming increasingly important for Apple, as it is slowly becoming a key hardware hub. In a filing with the stock exchange in Taiwan on Thursday, Foxconn stated that its Singapore subsidiary is providing the capital for its India entity, Hon Hai Technology India Mega Development Private Limited.
In 2017, Apple began manufacturing iPhones in India with the production of the iPhone SE. Three years later, in 2020, the company started making the iPhone 11 in India, marking the first time a high-end iPhone was made in the country. Another significant milestone was reached in 2022 when Foxconn India started making the iPhone 14, which was the first time that a new iPhone model was manufactured in India in the same calendar year as its global launch.
According to a September report by JP Morgan analysts, Apple plans to move 5% of global iPhone 14 production to India by the end of 2022 and expand its manufacturing capacity in the country to produce 25% of all iPhones by 2025.
In addition to increasing its production capacity in India to meet the growing demand in the local market, Apple also plans to supply Indian-made products to global markets. This will allow Apple to reduce its reliance on manufacturing hubs such as China and potentially avoid some of the supply chain disruptions that have impacted its operations in the past.
Additionally, producing its products in India will allow Apple to tap into the country"s large and skilled labor force, which will help the company increase its production capacity and better meet the demands of its global customers.
Source: TechCrunch