Apple Inc. AAPL supplier, Foxconn Technology Co., Ltd. FXCOF, has reportedly received approval to invest an additional $1 billion in its India-based manufacturing plant, significantly advancing its objective to establish a production hub outside of China.
Foxconn, globally renowned as the largest assembler of iPhones, intends to invest additional funds over the previously allocated $1.6 billion for its 300-acre site near Bengaluru's airport, according to a news report by Bloomberg, citing people familiar with the matter.
The additional investment is earmarked for expanding production capacity for Apple devices, likely including the iPhone, according to sources who requested anonymity due to the private nature of the information, the report read.
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With the latest approved expenditure, the Taiwanese company's total investment for the site will reach approximately $2.7 billion, positioning it as the core of Foxconn's manufacturing operations in India, the report added.
This significant financial commitment highlights the strategic shift of Foxconn and similar manufacturers away from China, amid its economic challenges and escalating tensions with the U.S., the report noted.
Foxconn, a key manufacturing partner for Apple, has increased its investment plans for the Karnataka-based plant at least once this year. Initially, in early 2023, the company intended to invest $700 million in the facility, situated in the southern tech hub.
While a significant part of this escalated investment is dedicated to Apple, it is anticipated that Foxconn will allocate a portion of the funds and the plant's resources to produce devices and components, such as electric vehicle parts, for other clients, according to the report.
Price Action: AAPL shares are trading higher by 0.47% premarket to $195.63 on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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