Apple supplier Foxconn invests USD 500 mn in India affiliate

NEW DELHI: Apple supplier Foxconn is investing another USD 500 million in India, amid supply chain disruptions at its major China iPhone plant, the media reported on Thursday.

The first to disclose that Foxconn's Singapore affiliate had invested USD 500 million in Hon Hai Technology India Mega Development Pvt Ltd was TechCrunch, which cited a corporate stock exchange filing in Taiwan.

Due to instability in China over its zero-Covid policy, which has badly impacted its supply chain and caused a major scarcity of new iPhone 14 Pro models, Apple is moving forward with its plans to manufacture iPhones and iPads in India and Vietnam.

According to earlier sources, "Apple no longer feels comfortable having so much of its business tied up in one area" as a result of the China unrest that last month affected its major supplier Foxconn's Zhengzhou factory and led to violent demonstrations.

According to renowned analyst Ming-chi Kuo, Apple plans to ship 40–45% of iPhones from India as opposed to a single-digit percentage at the moment.

Every fourth iPhone will be made in India by 2025,  as per J.P. Morgan.

Early this year, Apple began manufacturing the new iPhone 14 in India, a first for the tech giant as it shortens the production cycle of new iPhones in the nation to reduce dependence on China.

Industry sources predict that Apple's "Make in India" iPhones will likely represent close to 85% of the company's total iPhone production for the nation this year, helped by the country's supportive local manufacturing rules and ease of doing business.

With the release of the iPhone 14 series, Apple's iPhone production in India is anticipated to increase from 7 million units in 2021 to a new high of 12–13 million units in 2022.

The Gujarati government joined forces with Vedanta and Foxconn in September with the goal of investing Rs 1.54 lakh crore in the semiconductor manufacturing industry.

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