Apple plans a new $700 million plant in India to increase local production

China’s stifling COVID-19 policy and its growing tensions with Washington have compelled Apple to diversify its production outside the country. As part of its expansion plans, the tech giant is planning to build a new $700 million plant in India according to Bloomberg.

In addition to Vietnam and Malaysia, India has also become the tech company’s chosen destination to shift manufacturing away from China. 

Apple’s suppliers like Foxconn, Wistron, and Pegatron have established production units in the country to assemble iPhones, AirPods, and other products. It is reported that the tech company is interested in moving iPad production to India as well. 

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Foxconn to assemble iPhones and produce EV parts for Apple at its new Indian plant

As one of Apple’s biggest suppliers, Foxconn is now planning to establish another multi-million dollar 300-acre production unit in Bengaluru, the capital of Karnataka, and create nearly 100,000 jobs. Previously, Foxconn Hai Tech India opened a facility in Chennai that employs 8,000 people.

As per the report, the Taiwanese manufacturer will assemble handsets and produce parts for iPhone and Apple’s upcoming electric vehicle business.

The investment is one of Foxconn’s biggest single outlays to date in India and underscores how China’s at risk of losing its status as the world’s largest producer of consumer electronics. Apple and other US brands are leaning on their Chinese-based suppliers to explore alternative locations such as India and Vietnam. It’s a rethink of the global supply chain that’s accelerated during the pandemic and the war in Ukraine and could reshape the way global electronics are made.

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Recently, it was reported that the tech giant was facing “stumbling blocks” in an effort to increase production in India over quality issues and manufacturers’ work ethics. But in spite of production challenges, the tech giant is continuing to invest in India to reduce reliance on China. 

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Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.