Apple Supplier Foxconn Expands in India with $195M Investment

A Hon Hai Precision Industry Co Ltd HNHPF Foxconn unit will ink a deal on Monday with India's Tamil Nadu state to build a new facility for electronic components likely to create 6,000 new jobs.

The Apple Inc AAPL supplier subsidiary, Foxconn Industrial Internet (FII), looks to invest ₹16 billion ($194.45 million) to build a campus in Kancheepuram district, near the state's capital of Chennai, Reuters cites familiar sources.

Also Read: Foxconn Withdraws from $19.5B Semiconductor Joint Venture with Vedanta, Hindering India's Chipmaking Plans

The facility will be separate from the current sprawling campus near Chennai, where Foxconn assembles Apple's iPhones and employs more than 35,000 people.

The Foxconn subsidiary was in discussions with Tamil Nadu about the investment aiming for the plant's completion in 2024.

Foxconn's FII makes electronic devices, cloud service equipment, and industrial robots. 

Foxconn chairman Young Liu has been in India to attend the federal government's semiconductor conference. The company plans to quadruple the workforce at its iPhone factory in Tamil Nadu by late 2024.

The move marks the famous Apple supplier's diversification of operations to reduce its exposure to China, whose strict pandemic regulations disrupted the semiconductor supply chains.

Foxconn proposed to invest $500 million to set up manufacturing plants in the southern Indian state of Telangana, likely to create 25,000 jobs in the first phase.

Foxconn, which already manufactures iPhones in India, bagged a deal to manufacture the AirPods in India in 2023. It also bought land worth $37 million in Bengaluru in May.

Photo via Wikimedia Commons