Vital iPhone Assembler Foxconn Weighs $700M Investment In India, In A Bid To Migrate From China-US Tensions

Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group is eyeing investing $700 million in a new plant in India to ramp up local production.
The Apple Inc AAPL partner plans to build the plant to make iPhone parts on a 300-acre site close to the airport in Bengaluru, the capital of the southern Indian state of Karnataka, Bloomberg reports citing familiar sources.
The factory may also assemble Apple's handsets, and Foxconn may use the site to produce some parts for its nascent electric vehicle business.
The move highlighted a rush amongst suppliers to migrate their production base beyond China as geopolitical tensions flare up.
Apple and other U.S. brands are canvassing their Chinese-based suppliers to migrate production to India and Vietnam after the pandemic vandalized global supply chains, with the Ukraine war serving as an additional headwind.
The new production site in India will likely create about 100,000 jobs.
Output at the Zhengzhou plant plunged ahead of the year-end holidays due to the Covid resurgence, prompting Apple to re-examine its China-reliant supply chain.
India's local manufacturing drive and financial incentives have led Apple suppliers Foxconn, Wistron Corp WICOF, and Pegatron Corp PGTRF to ramp up in the country.
Price Action: AAPL shares traded higher by 1.08% at $147.49 premarket on the last check Thursday.
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