Foxconn recently unveiled plans to invest $500 million in Telangana in southern India as part of their plan to shift production away from China due to ongoing US-China tensions and pandemic-induced disruption in production of iPhones and other devices. This announcement signals Foxconn’s intentions of shifting production overseas due to these factors.
Foxconn Investment in Telangana Foxconn’s Telangana investment will create 25,000 jobs in its initial phase and is seen as a boost to India’s manufacturing sector, according to K. T. Rama Rao, state’s IT minister. Foxconn’s move marks an important contribution towards Atma Nirbhar Bharat initiative of government.
Foxconn first established itself in India in 2019, when they opened their first manufacturing plant in Tamil Nadu state. Recently, Foxconn received an order to produce Apple AirPods and set plans in motion to build an assembly plant to manufacture these devices in India.
Foxconn received approval from the Karnataka government to invest $968 million into Devanahalli near Bengaluru International Airport for an acquisition that covers an area covering 1.2 million sq m (13 million sq ft).
Impact of Foxconn Investment
Foxconn’s investment is expected to create employment opportunities and advance India’s ambitions of becoming a global manufacturing hub. Alongside Foxconn, two other Taiwanese suppliers such as Wistron and Pegatron also manufacture and assemble Apple devices in India.
Foxconn’s decision to establish manufacturing plants in Telangana, southern India is seen as an essential move toward fulfilling India’s Atma Nirbhar Bharat initiative and creating employment opportunities in India as well as contributing to furthering India’s quest to become a global manufacturing hub.