Apple Supplier Foxconn To Invest $500 Mn In Telangana

SUMMARY

Foxconn conducted the groundbreaking ceremony for its $500 Mn manufacturing facility in Telangana’s Kongar Kalaan on Monday

Telangana IT Minister KT Rama Rao said that the investment by the Apple supplier will create 25,000 direct jobs

India has emerged as an attractive manufacturing hub for Apple amid the rising US-China tensions. Foxconn is also looking to invest another $1 Bn in Bengaluru

In what is likely to further enhance India’s position as an attractive manufacturing destination, Apple supplier Foxconn on Monday (May 15) conducted a groundbreaking ceremony for its $500 Mn manufacturing facility in Telangana’s Kongar Kalaan.

Telangana IT Minister KT Rama Rao took to Twitter to make the announcement. He said that Foxconn’s investment in the state would create 25,000 direct jobs.

The development comes at a time when Apple has stepped up investments in India over the past few years as part of its attempts to reduce the reliance on China’s manufacturing amidst the rising tensions between Beijing and Washington.

Foxconn also plans to invest $1 Bn in Karnataka to set up a manufacturing facility on the outskirts of Bengaluru. The Taiwanese manufacturer has reportedly also bought 300 acre land in the capital of Karnataka for it.

Apple tripled the production of its iPhones in India to $7 Bn in the financial year 2022-23 (FY23). As per the Centre, the Cupertino-based tech giant has generated 1 lakh jobs in the country.

As per reports, Apple will also begin manufacturing iPhone15 and iPhone15 Plus in India. Tata Group is likely to produce the smartphones for the tech giant.

Besides Foxconn, other contract manufacturers of Apple are also looking to increase their investments in India. Salacomp is looking to double its headcount in India to 25,000 by 2026.

Besides iPhones, Apple supplier Jabil Inc has also started manufacturing AirPods components in India.

Along with an attractive manufacturing hub, India has also emerged as a big market for Apple. India was mentioned 19 times in Apple’s earnings call for the March quarter of 2023. The company said the January-March 2023 quarter was the best one for it in India and it posted double-digit growth year-on-year.

“There are a lot of people coming into the middle class, and I feel that India is at a tipping point, and it’s great to be there,” Apple CEO Tim Cook said.

Recently, the company also opened its official stores in India at BKC, Mumbai and Saket, Delhi.