Apple Supplier Foxconn Said to Plan $1 Billion Investment in India

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Foxconn plans to take a position up to $1 billion (roughly Rs. 7,516 crores) to expand a factory in southern India where the Taiwanese contract manufacturer assembles Apple iPhones, two sources said.

The move, the size of which has not previously been reported, is a component of a quiet and gradual production shift by Apple faraway from China because it navigates disruptions from a trade war between Beijing and Washington and therefore the coronavirus crisis.

"There's a robust request from Apple to its clients to maneuver a part of the iPhone production out of China," one among the sources with direct knowledge of the matter told Reuters.
Foxconn said it doesn't discuss matters associated with customers, while Apple didn't answer an invitation for comment.

Foxconn's planned investment within the Sriperumbur plant, where Apple's iPhone XR is formed some 50 km west of Chennai, will happen over the course of three years, the second source said.

Some of Apple's other iPhones models, made by Foxconn in China, are going to be made at the plant, said both sources, who declined to be identified because the talks are private and details have yet to be finalised.

Taipei-headquartered Foxconn will add some 6,000 jobs at the Sriperumbur plant in Tamil Nadu state under the plan, one among the sources said. It also operates a separate plant within the southern Indian state of Andhra Pradesh ,
where it makes smartphones for China's Xiaomi, among others.

Foxconn Chairman Liu Young-way last month said it might build up its investment in India, without giving details.

Status symbol
Apple accounts for about one-hundredth of smartphone sales in India, the world's second-biggest smartphone market,
where its pricey iPhones are often seen as a standing symbol.

Building more phones in India also will help Apple save on import taxes that further push up its prices.

Apple assembles a couple of models through Taiwan's Wistron within the southern tech hub of Bengaluru.
Wistron is additionally set to open a replacement plant, where it plans to form more Apple devices, Reuters previously reported.

"With India's labour cheaper compared with China, and therefore the gradual expansion of its supplier base here,
Apple are going to be ready to use the country as an export hub," Neil Shah of Hong Kong-based tech researcher Counterpoint said.

India is additionally working to spice up electronics manufacturing by firms like Foxconn and last month launched a $6.65 billion plan,
offering five global smartphone makers incentives to determine or expand domestic production.

Having Apple widen its local presence is probably going to be a lift for Prime Minister
Narendra Modi's flagship "Make In India" drive, aimed toward creating new jobs.

South Korea's Samsung has already said it'll make smartphones for export from its plant outside New Delhi .

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