2023-08-01 19:36:21
A Foxconnthe main supplier of Appleplans to invest US$500 million in the construction of two new factories in the state of Karnatakain the southern region of India. According to the Bloombergat least one of them will produce components for the Apple.
Also according to the information, this action is part of Foxconn’s strategy to reduce dependence on China and diversify its operations. The exact location of the factories has yet to be released, but a formal announcement is expected soon.
For some time now, in fact, the Taiwanese has been working alongside Apple – even under pressure – to expand its factories beyond the Chinese border. This is the second time that India, which has been the main destination for this expansion, receives an investment of exactly US$500 million from the manufacturer.
The Karnataka government had already approved Foxconn’s plans for a facility in the region, stipulating that it might create up to 50,000 jobs. However, officials have not yet commented on the proposed plan for a second factory.
These investments were encouraged by Indian Prime Minister Narendra Modi’s measures to promote local manufacturing. States like Karnataka attracted companies by offering quick decision-making, removing bureaucratic hurdles and providing subsidies.
The Taiwanese company’s moves into India signal a significant shift in the global supply chain, a process that has been accelerated by the COVID-19 pandemic, tensions between Washington and Beijing and the war in Ukraine.
Investment in India is also a response to recent interruptions at Foxconn’s largest iPhone assembly complex in Zhengzhou (China), which caused a drop in production ahead of the 2022 holiday season.
The situation is believed to have forced Apple to re-examine its supply chain — highly dependent on China — and consider diversification. The expectation is that the first factory in Karnataka will start operating in April next year.
via AppleInsider
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