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Foxconn, one of Apple’s manufacturing partners, is planning to invest $700 million in a new plant in Bengaluru, India, in an effort to reduce its reliance on China.
The Taiwanese company has factories across mainland China and Taiwan, but with increasing tensions between the US and China, many companies in Apple’s supply chain are seeking to diversify their production locations.
Sources familiar with the matter have informed Bloomberg that Foxconn plans to use the new facility to ramp up production of iPhone parts, as well as potentially assemble iPhones and produce parts for electric vehicles. If the plans go ahead, the plant could create up to 100,000 jobs, according to the report.
It’s worth noting that this is not a finalized plan and could be subject to change. It is also unclear whether the plant will be for new product output or if it will replace production from another location. Nonetheless, this move by Foxconn could help Apple’s supply chain become more diversified and less reliant on China, which has faced multiple lockdowns, riots, and production shutdowns throughout the end of 2022.
This isn’t the first time we’ve heard about Apple and its supply chain expanding into India. In fact, according to one report, Apple is looking to triple its iPhone production over the next three years.
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As a rapidly growing economy with a large and young population, India is an attractive market for tech companies like Apple. The Indian government has also been pushing for more local manufacturing in order to boost its economy and create jobs.
With more companies seeking to diversify their supply chains away from China, India is likely to become an increasingly important player in the global tech industry. Foxconn’s investment in a new plant in Bengaluru is just one example of this trend, and we can expect to see more such moves in the coming years.