Apple iPhone Maker Foxconn To Invest $1 Billion In India, Create 6000 Jobs, Says Report
Foxconn the Taiwanese electronics major is reportedly planning to invest up to $1 billion in India. Foxconn is the contract manufacturer that puts together Apples iPhone models. The investment will be made along a three-year period as Foxconn will add around 6000 jobs at the plant.
Apple has been trying to move its production capacity outside China for some time now. Potentially working on those lines, Foxconn, the Taiwanese electronics major is reportedly planning to invest up to $1 billion (~Rs 7515 crore) in India. Foxconn is the contract manufacturer that puts together Apple's iPhone models.
Apple is reportedly being active on its plan to move iPhone production away from China to avoid disruptions from the ongoing trade war of the country with the US. A Reuters report quotes sources saying ¡°There¡¯s a strong request from Apple to its clients to move part of the iPhone production out of China.¡±
None of the parties have confirmed the development yet.
Indian Investment
(Representative Image: Reuters)
Sources cited by Reuters say that the Taiwanese giant will be investing $1 billion in its Sriperumbur plant, Chennai, Tamil Nadu. The facility produces Apple¡¯s iPhone XR and with the investment, will start producing other iPhone variants in the country too.
The investment has been hinted at before, with Foxconn Chief Liu Young-Way confirming future investments in India last month, without giving details. The new sources now reveal that the investment will be made along a three-year period, as Foxconn will add around 6,000 jobs at the plant.
Wistron Corp, a producer of Apple iPhones other than Foxconn has also announced an expansion of its base in India. The Taiwanese giant is set to open a new plant to make more Apple devices as reported earlier.
Benefits
The Apple Inc.logo (Image: Reuters)
Increasing its production capacity in India will help Apple reduce the prices of its iPhones in the country, currently the world¡¯s second largest smartphones market. Other than the slash on the import taxes, the company also stands to gain from the affordable labour in the country.
In addition, the Indian government is offering incentives to Apple to expand their bases in India. A total of five global smartphone makers have been offered incentives through a $6.65 billion plan to establish or expand production in the country.
Meant to create jobs in the country, the plan has appealed to the smartphone giants. Samsung has already confirmed that it will expand smartphone production in its world¡¯s largest mobile factory in Noida for export.
