In a significant development for the tech industry, Apple Inc’s supplier Foxconn has announced plans to commence the manufacturing of iPhones in the southern Indian state of Karnataka by April 2024. This move is set to take place in the outskirts of Bengaluru, in a place called Devanahalli. This strategic shift is seen as a part of Apple’s broader strategy to diversify its production base beyond China.
The project, which is valued at around Rs 13,600 crore (approximately $1.59 billion), is expected to play a pivotal role in job creation, with estimates suggesting around 50,000 new jobs will be generated. The land for the factory will be handed over to Foxconn by July 1, 2023, to facilitate the commencement of this large-scale project.
Foxconn, recognized as the world’s largest contract electronics manufacturer, has set an ambitious target of manufacturing 20 million iPhones annually at this new plant. This expansion in India is not only significant for Apple’s global manufacturing efforts but also marks a major step in boosting the local economy and tech industry in Karnataka.
This move by Foxconn and Apple comes in the wake of China’s strict Covid-related restrictions, which had disrupted the production of new iPhones and other devices. Additionally, it appears to be a strategic measure to mitigate risks arising from the ongoing tensions between Beijing and Washington.
The Karnataka government, recognizing the significance of this project, has pledged full support, ensuring the provision of necessary infrastructure like water, power supply, and road connectivity. Moreover, there is a concerted effort to provide training programs to equip the local workforce with the required skill sets for these new opportunities.
This development is part of a larger trend where major tech companies are increasingly looking at India as a viable manufacturing hub. Apple, in particular, has expressed its goal of expanding its manufacturing presence in India, aiming to increase the country’s contribution to its global manufacturing footprint.
Overall, Foxconn’s decision to start iPhone production in Karnataka by 2024 is a major boost to India’s aspirations of becoming a significant player in the global tech manufacturing space, providing a substantial number of jobs and potentially attracting further investments in the sector.