Foxconn, a major Apple supplier, is planning a substantial expansion of its operations in India, with ambitions to double its workforce and investment in the country by the next year. This move comes as part of Foxconn's strategy to diversify its manufacturing away from China.
V Lee, Foxconn's representative in India, made this announcement in a LinkedIn post to mark Indian Prime Minister Narendra Modi's 73rd birthday. Lee stated that the company aims to double its employment, foreign direct investment (FDI), and business size in India within a year, although specific details were not provided.
Foxconn has already established an iPhone manufacturing facility in the state of Tamil Nadu, employing approximately 40,000 workers. In August, the state of Karnataka revealed that Foxconn would invest $600 million in two projects aimed at producing casing components for iPhones and chip-making equipment.
Foxconn's Chairman, Liu Young-way, has expressed optimism about India's potential as a manufacturing hub. During an earnings briefing last month, he emphasized that the company's investment of several billion dollars in India represents just the beginning of their commitment to the region.
This expansion in India is part of a broader trend of diversification among tech manufacturers looking to reduce their dependence on China as a production base. Companies like Foxconn are seeking alternative locations to mitigate risks associated with supply chain disruptions and geopolitical tensions.
India has been actively courting foreign manufacturers, offering various incentives and a large labor force. Additionally, India's burgeoning consumer market provides a significant incentive for companies to establish or expand their manufacturing operations in the country.
Foxconn's commitment to further investment and job creation in India signals the company's intent to play a more prominent role in the country's growing electronics manufacturing sector, positioning it as a significant player in the global supply chain.
As Foxconn continues to expand its presence in India, this development could have a considerable impact on Apple's manufacturing and supply chain capabilities, particularly for products like the iPhone. It also underscores the strategic importance of diversifying manufacturing beyond China for global tech giants and their suppliers.