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Foxconn Technology Group, makers of Apple iPhone, reportedly plans to invest as much as $700 million for a new plant in India as it apparently looks to ramp up production in the country while bringing down its dependence on facilities in China amid growing Washington-Beijing tensions. Bloomberg, quoting sources, reported that the Taiwanese company could be manufacturing iPhone parts on a 300-acre site near Bengaluru which could also help its electric vehicle ambitions that are still in an infant stage.
In recent times, many companies have been looking at looking at India as a big production hub for manufacturing of electronic components. The global supply chain is currently dependent - for most parts - on China and the situation and policies within the country. But many US brands specifically - and including Apple - are urging Chinese-based suppliers to diversify hubs. Foxconn, for example, has a massive facility in Zhengzhou which employs around two lakh people but its planned plant near Bengaluru could potentially open up around one lakh jobs here as well.
Covid-related factors had negatively impacted production at the Zhengzhou plant, further underlining the need to have hubs in other countries. So while the reported plans of a plant near Bengaluru could provide a more stable operation line, it could also serve as the base for the company's EV plans. Foxconn has already showcased its first-ever EV, called Model C and which will be offered in Taiwan initially. In 2021, the company also announced a joint venture with Yulon Group in order to develop and manufacture EVs. And some of the parts could be manufactured at the proposed India plant.
With determined plans of an electric crossover and smaller and affordable EVs in the times to come, Foxconn's foray into the world of mobility could well get a boost from India.