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Apple supplier Foxconn will invest an additional $500 million in India

The South Asian market of India is gradually becoming a crucial hardware base for Apple, and Foxconn is investing another $500 million in its India business as it cranks up its efforts to expand its chipmaking operations.

Thursday, Foxconn said in a filing with the Taiwan stock exchange that its Singaporean subsidiary would be investing in Hon Hai Technology India Mega Development Private Limited in India.


As its important partner Apple begins local production of the current generation iPhone units in India, Foxconn, also known as Hon Hai, has stepped up its efforts to expand its smartphone production capacity in the nation.

By the end of September, Apple had begun local assembly of the iPhone 14 models in India, marking the first time in the same calendar year that the whole current lineup had been manufactured domestically in the world's second largest smartphone market.

The majority of Apple's products have been manufactured in China for almost a decade, but analysts predict that by 2025, India will have replaced China as Apple's primary iPhone production hub. According to JP Morgan analysts, Apple will shift 5% of worldwide iPhone 14 production to India by late 2022, and the company plans to grow its manufacturing capacity in the nation to create 25% of all iPhones by 2025.

Many analysts have predicted that Apple will have India "contribute up to 10% of total iPhone production in 2-3 years." This was also the conclusion drawn by Morgan Stanley analysts in a research released on Wednesday.

In addition, Foxconn recently signed an MoU with the Indian state of Gujarat to establish a $20 billion semiconductor and display plant in the coastal state that is home to Prime Minister Narendra Modi.

Foxconn has pledged its technological knowledge to the operation, while Vedanta, which is well-known in the mining industry, has pledged to finance the project, according to top authorities. Capital costs and electricity costs will both be subsidised by the state of Gujarat.

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