Apple supplier Foxconn acquires 300 acres of land near Bengaluru: What it means for iPhone production in India
Foxconn has purchased 300 acres of land worth Rs 300 crores in the Bengaluru rural district of Karnataka, as per filling with London Stock Exchange. The land is in Devanahalli near Bengaluru’s Kempegowda International Airport.
As per reports, Foxconn is planning to invest USD 700 million on a new plant in India to ramp up local manufacturing. Foxconn is also Apple’s partner, and it can use the factory to assemble Apple’s handsets and to manufacture parts for its nascent electric vehicle business.
The plans can still change as Foxconn is yet to finalise project details and it is not clear whether the plant will represent new capacity, or it will accommodate any production shift from other sites such as facilities in China.
In March, the Karnataka government’s announcement of Foxconn’s investment in the state created tension after Foxconn denied entering into any binding or definitive agreements.
Subsequently, in a letter to Karnataka CM, Foxconn’s Chairman Young Liu said, “My team will be in close contact with your team to take this forward and ensure successful grounding of “Project Elephant” in Bengaluru. I am confident that this project will lay a strong foundation for our other multiple plans, spanning mechanical and precision machinery, electric vehicles, IC design, and semiconductor segments, to consider your State as a potential investment destination.”
Foxconn has been assembling iPhones in India since 2017 and as Apple is looking to diversify its China-reliant supply chain, Foxconn can use a new facility to assemble iPhones in India. So, if Foxconn uses this new facility for iPhone production in India, what impact will it have?
What Foxconn’s new facility means for iPhone production in India?
iPhone production in India saw a major shift in 2022 when Apple decided to assemble the new iPhone 14 in India, slashing the lag time between Chinese and Indian production from months to weeks.
New Foxconn’s iPhone manufacturing facility is likely to help India increase its export. Last year, Apple exported more than USD 2.5 billion worth of iPhones from India between April and December. This was nearly twice the previous fiscal year’s total.
As the company is looking to diversify its supply chain, its Chinese suppliers are applying for clearance in India. Local manufacturing of iPhones will help India build an elaborate ecosystem of reliable components.
Currently, Tata Group provides some parts to Apple and one of Apple’s suppliers, Finland’s Salcomp manufactures charges and other smartphone parts in India. Local manufacturing will boost this ecosystem.
India provides cost-saving advantages to manufacturers. Labour cost in India is at least 50 percent lower than China and the government also offers 4 to 6 percent of production costs as subsidies for five years once certain performance criteria are met. This will help Apple to reduce the price of its products in India.
The post Apple supplier Foxconn acquires 300 acres of land near Bengaluru: What it means for iPhone production in India appeared first on Techlusive.
Foxconn has purchased 300 acres of land worth Rs 300 crores in the Bengaluru rural district of Karnataka, as per filling with London Stock Exchange. The land is in Devanahalli near Bengaluru’s Kempegowda International Airport.
As per reports, Foxconn is planning to invest USD 700 million on a new plant in India to ramp up local manufacturing. Foxconn is also Apple’s partner, and it can use the factory to assemble Apple’s handsets and to manufacture parts for its nascent electric vehicle business.
The plans can still change as Foxconn is yet to finalise project details and it is not clear whether the plant will represent new capacity, or it will accommodate any production shift from other sites such as facilities in China.
In March, the Karnataka government’s announcement of Foxconn’s investment in the state created tension after Foxconn denied entering into any binding or definitive agreements.
Subsequently, in a letter to Karnataka CM, Foxconn’s Chairman Young Liu said, “My team will be in close contact with your team to take this forward and ensure successful grounding of “Project Elephant” in Bengaluru. I am confident that this project will lay a strong foundation for our other multiple plans, spanning mechanical and precision machinery, electric vehicles, IC design, and semiconductor segments, to consider your State as a potential investment destination.”
Foxconn has been assembling iPhones in India since 2017 and as Apple is looking to diversify its China-reliant supply chain, Foxconn can use a new facility to assemble iPhones in India. So, if Foxconn uses this new facility for iPhone production in India, what impact will it have?
What Foxconn’s new facility means for iPhone production in India?
iPhone production in India saw a major shift in 2022 when Apple decided to assemble the new iPhone 14 in India, slashing the lag time between Chinese and Indian production from months to weeks.
New Foxconn’s iPhone manufacturing facility is likely to help India increase its export. Last year, Apple exported more than USD 2.5 billion worth of iPhones from India between April and December. This was nearly twice the previous fiscal year’s total.
As the company is looking to diversify its supply chain, its Chinese suppliers are applying for clearance in India. Local manufacturing of iPhones will help India build an elaborate ecosystem of reliable components.
Currently, Tata Group provides some parts to Apple and one of Apple’s suppliers, Finland’s Salcomp manufactures charges and other smartphone parts in India. Local manufacturing will boost this ecosystem.
India provides cost-saving advantages to manufacturers. Labour cost in India is at least 50 percent lower than China and the government also offers 4 to 6 percent of production costs as subsidies for five years once certain performance criteria are met. This will help Apple to reduce the price of its products in India.
The post Apple supplier Foxconn acquires 300 acres of land near Bengaluru: What it means for iPhone production in India appeared first on Techlusive.
