Foxconn is one of the largest producers of Apple products. The plant in Bengaluru is expected to produce apple productsIn addition to other electronics.
Apple is steadily reducing its dependence on China and increasing its presence in India. This Bengaluru plant, among other Foxconn investments in India, could shape the future global supply chain mobility.
Sources in the Karnataka government said the total investment in the state would exceed $500 million and could exceed $1 billion over time. The letter of intent signed between the Karnataka government and Foxconn March states that the proposed investment will take place between 2023 and 2027, and that the project will provide direct and indirect employment to around 1 lakh people. Young Liu, chairman of Foxconn, had visited Bengaluru in March to meet state officials and view the proposed land. The state government had tried its best to get the contract and had even given a name to Foxconn’s proposal – Project Elephant.
Foxconn now has a presence in Gujarat, Karnataka, Telangana and Tamil Nadu. Tarun Pathak, research director at Counterpoint, said Foxconn’s expansion into India is part of Apple’s strategy to expand its manufacturing footprint in the country.
Navkendar Singh, associate VP at research firm IDC India, said that Apple has been very successful in the last 2-3 years in terms of iPhone volumes in India. From 2.7 million iPhones in 2020 to around 4.8 million in 2021 and around 6.7 million in 2022, it has shown a steady growth. “This year, they should do about 9 million,” he said.