Foxconn Invests $15 Billion in India, Shifts Production from China

Foxconn, a key manufacturing partner of Apple, has announced a significant investment of 15 billion dollars into its Indian subsidiary. This move is part of a broader strategy to shift production away from China and towards India, a market that has been increasingly attractive for global tech companies. The investment, disclosed in a filing with the exchange, was made through Foxconn's Singapore subsidiary and amounts to approximately 14.89 billion dollars. This substantial capital injection is aimed at bolstering Foxconn's manufacturing capabilities in India, which has become a critical region for Apple's supply chain diversification efforts.

The decision to invest in India aligns with Apple's long-term strategy to reduce its reliance on China for manufacturing. By expanding its operations in India, Apple aims to mitigate risks associated with geopolitical tensions and supply chain disruptions. This investment is also expected to create new job opportunities in India, further strengthening the country's position as a global manufacturing hub.

Foxconn's investment in India is not limited to Apple's supply chain. The company has also been involved in a 435 million dollars joint venture with HCL Technologies to establish a semiconductor fabrication plant in the northern Indian state of Uttar Pradesh. This project underscores Foxconn's commitment to the Indian market and its efforts to diversify its manufacturing portfolio beyond consumer electronics.

Foxconn is currently constructing new factories in southern India and enhancing production capacity. Apple has plans to import a significant portion of its iPhones, destined for the U.S. market, from India by the end of next year. This strategy has drawn criticism from Donald Trump, who reportedly urged Apple CEO Tim Cook to halt the construction of new factories in India.

Most of the iPhones produced in India are assembled at Foxconn's factories in the southern part of the country. Tata Group's electronics manufacturing subsidiary is also a key supplier, having acquired the local operations of Wistron and managing Foxconn's business in India.

This investment is part of a broader trend among global tech companies to diversify their supply chains and reduce dependence on a single region. By expanding its operations in India, Foxconn is positioning itself to capitalize on the growing demand for electronics in the region while also mitigating risks associated with geopolitical tensions and supply chain disruptions. This move is expected to have a positive impact on both Foxconn and Apple, as it will help to ensure the stability and resilience of their supply chains in the face of an increasingly uncertain global landscape.