Foxconn Plans USD 700 Million New Factory in India

On 3 March 2023, Foxconn announced plans to invest USD 700 million to build a new 300-acre facility in Bengaluru, India. The new factory will produce Apple iPhone amongst other products.

The trade war between US and China shows no sign of abating any time soon. Therefore, in order to mitigate geopolitical risks, Apple and Foxconn have agreed to diversify global supply chains and to shift some production from China to India.

Bengaluru, also known as Bangalore, is a famous city in the state of Karnataka which is sometimes referred to as the Silicon Valley of India. Thanks to its economy based on hitech, the state of Karnataka boasts one of the highest GDP per capita of any state in India.

The new Foxconn plant is expected to hire 100,000 employees and represents the largest investment by Foxconn in India so far. It is worth recalling that Foxconn opened another facility in Chennai back in 2019.

During public speeches, President Modi has repeatedly proclaimed that India plans to manufacture up to 25% of all iPhones in the near future as part of its ‘Make in India’ program. In fact, India has made clear its ambitions that it is hungry take a larger bite at the Chinese apple.