Apple's Major Supplier Foxconn Files Application To Set Up Semiconductor Unit
This development follows Foxconn's withdrawal from a joint venture (JV) with India's Vedanta Group aimed at setting up a chip factory in India.
Apple iPhone's biggest partner and Taiwanese electronics manufacturing services company Foxconn has filed an application to establish a semiconductor fabrication facility in the country, the Parliament has been informed, said a report by news agency PTI. Minister of State (MoS) for electronics and IT Rajeev Chandrasekhar, in a written reply to Lok Sabha, said that the government has taken several measures to boost electronics manufacturing, including semiconductors, incentivising large investments in electronic goods and appliances and promote exports.
This development follows Foxconn's withdrawal from a joint venture (JV) with India's Vedanta Group aimed at setting up a chip factory in India.
"Foxconn has submitted its application under the 'modified scheme for setting up of semiconductor fabs in India' for the establishment of semiconductor fab in the country," Chandrasekhar was quoted as saying by the PTI report.
Foxconn Technology Group recently received approval to invest at least an additional $1 billion in its upcoming plant in India. The facility will be dedicated to manufacturing Apple Inc. products.
This substantial increase, added to the initial $1.6 billion allocated for the 300-acre site near Bengaluru's airport, signifies a significant expansion in Foxconn's efforts to establish a manufacturing hub outside of China. The additional funds will support increased capacity for various Apple devices, potentially including the iPhone, said a recent report by news agency Bloomberg, citing sources familiar with the matter.
Initially set at $700 million in early 2023, the investment for the complex located in Karnataka's southern tech hub has now increased. While the majority of the additional investment is earmarked for Apple, Foxconn may allocate a portion of the funds and utilise the plant to manufacture devices and components, potentially including electric vehicle (EV) parts, for other clients.
The largest assembler of iPhones globally, Foxconn, intends to invest this additional amount alongside the initially earmarked $1.6 billion for the 300-acre site near Bengaluru's airport, according to insiders, the report added. This new capital infusion is earmarked for expanding capacity for Apple devices, potentially including the iPhone.
The development comes as Hon Hai, commonly known as Foxconn, and other Taiwanese electronics manufacturers focus on broadening their business ventures beyond China due to escalating tensions between Washington and Beijing.
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