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Apple’s global contract manufacturer, Foxconn announced that it has invested an additional $500 million in its India business. In an announcement on the Taiwan Stock Exchange on Thursday, Foxconn said its Singapore subsidiary would deploy the capital in its India entity, Foxconn Hon Hai Technology India Mega Development Private Limited.
The move comes as Foxconn’s production units in China face challenges with China’s zero-Covid policies. Foxconn is ramping up its production capacity in India.
In late September, Apple began assembling the iPhone 14 models in India, locally producing the current line-up for the first time in the world’s second-largest smartphone market.
Global manufacturing hub
Analysts estimate that Apple will turn India into a global iPhone manufacturing hub by 2025 as it slowly cuts its reliance on China, where it has been producing the vast majority of its devices for over a decade. In a September report, JP Morgan analysts said Apple will move 5 per cent of global iPhone 14 production to India by late 2022 and expand its manufacturing capacity to produce 25 per cent of all iPhones by 2025.
In a report Wednesday, Morgan Stanley analysts echoed many similar estimations, saying Apple’s goal is to have India “contribute up to 10 per cent of total iPhone production in 2-3 years”.
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