Apple key supplier Foxconn is reportedly investing $500 million more in India. As spotted by TechCrunch, a company stock exchange filing in Taiwan has revealed that Foxconn’s Singapore subsidiary is investing $500 million in Hon Hai Technology India Mega Development Pvt Ltd. The move follows the speculations that Apple is planning to shift the production of iPhones and iPads from China to India and Vietnam. For those who are unaware, unrest in China over the zero-Covid policy has severely disrupted Apple’s supply chain. The protests have led to an acute shortage of new iPhone 14 Pro models.
The China upheaval, which hit its key supplier Foxconn`s Zhengzhou factory last month resulting in violent protests, means "Apple no longer feels comfortable having so much of its business tied up in one place", according to earlier reports. Apple aims to ship 40-45 percent of iPhones from India compared with a single-digit percentage currently, according to famed analyst Ming-chi Kuo.
Every fourth iPhone will be made in India by 2025, according to J.P. Morgan. Apple earlier this year kicked off the production of the new iPhone 14 in India, a first for the tech giant as it narrows down the manufacturing period of new iPhones in the country to cut dependence on China.
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Buoyed by the ease-of-doing business and friendly local manufacturing policies, Apple`s `Make in India` iPhones will potentially account for close to 85 percent of its total iPhone production for the country this year, according to industry experts.
With the iPhone 14 series, Apple's iPhone production in India is slated to jump from 7 million iPhones in 2021 to touch a new milestone of around 12-13 million iPhones in 2022.
In September, the Gujarat government partnered with Vedanta and Foxconn, aiming an investment of Rs 1.54 lakh crore to achieve self-reliance in the field of semiconductor manufacturing. (with inputs from IANS)
