Telangana, India – Foxconn, a key contract partner of Apple, has announced plans to invest $500 million in setting up manufacturing plants in the southern Indian state of Telangana. This move is part of Foxconn’s strategy to expand its presence in the South Asian market.
K.T. Rama Rao, Telangana’s IT minister, took to Twitter to share the news, stating that the investment from Foxconn would create 25,000 direct jobs in the initial phase. Earlier this year, Foxconn won a bid to manufacture AirPods in India, adding to its existing iPhone manufacturing operations in the country, as reported by Reuters. Furthermore, the company recently purchased land worth $37 million in Bengaluru, according to local media reports.
In recent years, India’s Prime Minister, Narendra Modi, has introduced financial incentives to encourage local manufacturing, attracting commitments from major players such as Foxconn, Wistron, and Pegatron. Foxconn, in particular, has been operating in India since 2006, giving it a significant advantage over global competitors. The company’s chairman, Young Liu, highlighted their expertise in managing local employees, supply chain, and logistics, which have allowed them to outpace the market and expand rapidly.
Liu emphasized the vast potential market in India, with a population of 1.4 billion, making it an attractive destination for mid-to-high-end products. He mentioned that the company intends to expand its assembly and component operations in India and expects to see more suppliers establishing their plants in the country. Additionally, India’s favorable labor costs further enhance its advantages. Foxconn will continue to seek government incentives to maintain its competitiveness.
The growing interest from Apple’s manufacturing partners aligns with the iPhone-maker’s efforts to diversify its manufacturing infrastructure beyond China. Just last month, Apple inaugurated its first two retail stores in India, signaling its commitment to the market. Analysts at JP Morgan predict that by 2025, India could account for 25% of all iPhone manufacturing capacity for Apple.
Foxconn’s significant investment in Telangana highlights the company’s confidence in India’s potential as a manufacturing hub and underscores its commitment to expanding its operations in the country, creating job opportunities and bolstering the local economy.