Biggest iPhone supplier Foxconn Technology Group has 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, says a 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.
Notably, according to a recent Reuters report, the Foxconn intends to increase its workforce and investment in India two-fold by the upcoming year, as stated by a company executive earlier in September. Chairman Liu Young-way emphasized the substantial potential in India during an August earnings briefing, highlighting that "several billion dollars in investment is just the start."
Earlier in August, the southern Indian state of Karnataka revealed Foxconn's intention to invest $600 million in two component factories within the southern state. This comprises a facility dedicated to producing mechanical enclosures for iPhone devices and a semiconductor equipment manufacturing plant in collaboration with Applied Materials Inc, as stated by the state government at that time.