Apple supplier Foxconn to invest $1 billion in India, another step away from China
Apple’s most important supplier is investing big in India as the U.S.-China trade war stresses supply chains.
Although iPhone, iPod, and iPad parts are manufactured by companies all around the world, only two Taiwan-based companies assemble the products: Foxconn and Pegatron. Currently, Foxconn (also known as Hon Hai Precision Industry Co. Ltd.) assembles the majority of iPhones in China.
However, over the next three years, Foxconn plans to invest up to $1 billion into its Sriperumbudur plant in southern India, according to Reuters. The plant currently assembles Apple’s iPhone XR, but after the new investment, it will also manufacture other iPhone models currently produced in China.
The move comes at the same time as an Indian government push to attract electronics manufacturers, and the ongoing U.S. push to move supply chains out of China. Last month, New Delhi announced a $6.65 billion plan offering global smartphone makers incentives to expand their production in India. In 2014, Prime Minister Modi launched the “Make in India” campaign with the goal of turning India into a global manufacturing hub.
Currently, Apple only accounts for 1% of smartphone sales in India, the world’s second-largest smartphone market. Domestic production will decrease costs and offer potential for Apple to capture a larger share of India’s gigantic smartphone market.
