Telecom

India Approves $968 Million Investment From Foxconn Unit

 

India has approved an 80 billion rupee ($967.91 million) investment by a unit of Taiwan’s Foxconn in its southern state of Karnataka.

The investment will lead to the creation of 50,000 jobs, the Karnataka state government said in a statement on Monday.

Foxconn, the world’s largest contract electronics manufacturer, has been in discussions with multiple Indian states, but has not announced any investment plans so far in Karnataka.

 

Also on AF: Foxconn Wins Apple AirPod Order, to Build $200m India Factory

 

Foxconn did not immediately respond to Reuters’ request for confirmation on the investment.

The Apple supplier had won an order to make AirPods and planned to build a facility in India to manufacture the wireless earphones, two people with direct knowledge of the matter told Reuters last week.

Apple has been shifting production away from China after the country’s strict zero-Covid curbs disrupted the manufacturing of new iPhones and other devices in the country. The tech giant is also looking to avoid a hit to its business due to tensions between Beijing and Washington.

 

Chip, EV cooperation with India

Earlier this month, Foxconn said it was seeking cooperation in India in new areas like chips and electric vehicles (EVs) after a visit to the country by its chairman, Liu Young.

“My trip this week supported Foxconn’s efforts to deepen partnerships, meet old friends and make new ones, and seek cooperation in new areas such as semiconductor development and electric vehicles,” Young had said.

The Foxconn chief had met with India Prime Minister Narendra Modi during his week-long visit.

He had also visited Karnataka state during the trip, following which the state’s government announced Apple’s iPhones will soon be assembled at a second site in the state.

Around 300 acres (120 hectares) had been aside to set up a factory, the state government had said.

In January, India’s trade minister said Apple, which began iPhone assembly in the country in 2017 through Wistron and later Foxconn, wants India to account for up to 25% of its production from about 5% to 7% currently.

 

  • Reuters, with additional editing by Vishakha Saxena

 

Also read:

Apple Supplier Foxconn Speeds up India Expansion in China Shift

Foxconn Teams Up With Vedanta To Make Chips In India

Apple, Foxconn Spur Landmark Labour Reforms in Indian State

Apple’s Shift to Produce iPhones in India Facing Hurdles – FT

 

 

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at vishakha.saxena@asiafinancial.com

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