Foxconn Plans $1.5 Billion Investment in India Operations
Foxconn's Major Investment in India
Foxconn, a key supplier for Apple, is poised to invest $1.5 billion in its Indian operations, as reported by a news agency citing a company filing. This move comes as Apple seeks to relocate more of its manufacturing away from China, which has been impacted by tariffs. According to the report, Foxconn's subsidiary based in Singapore will acquire 12.77 billion shares at a price of Rs 10 each, totaling Rs 127.74 billion ($1.5 billion) for Yuzhan Technology India.
Located in Tamil Nadu, Yuzhan Technology India is responsible for producing electronic components and assembling iPhones for Apple. The tech giant is positioning India as a viable alternative for manufacturing, especially in light of the tariffs imposed by former US President Donald Trump on China, which have raised concerns about supply chains and potential increases in iPhone prices.
In March, Apple significantly increased its production in India, exporting approximately 600 tons of iPhones valued at $2 billion to the United States.
Government Initiatives Supporting Manufacturing
To bolster its manufacturing sector, the Indian government has introduced various production-linked incentive (PLI) schemes aimed at enhancing the global competitiveness of local manufacturers, attracting investments, boosting exports, and reducing reliance on imports.
In light of supply chain challenges that have emerged since the COVID-19 pandemic and ongoing geopolitical tensions, many global companies, particularly in manufacturing, are diversifying their operations across different regions. This trend is primarily driven by the need to mitigate risks and enhance operational flexibility.
India is increasingly viewed as an attractive destination for establishing manufacturing bases due to its political stability, vast market potential, dynamic workforce, and rising income levels.
Apple began its iPhone manufacturing journey in India in 2017, and the PLI scheme introduced by the central government has likely played a significant role in attracting various tech companies, including Apple, to invest in the country.