Contract Manufacturer to Invest $1 Billion in India Factory to Make iPhones
Foxconn, a Taiwanese multinational electronics contract manufacturer, plans to invest up to $1 billion to expand its factory in southern India where it assembles Apple iPhones, according to Reuters. The investment is reportedly being made at Apple’s request.
Apple is said to be quietly and gradually shifting production away from China because of the trade war with the United States and the coronavirus pandemic, according to Reuters. “There’s a strong request from Apple to its clients to move part of the iPhone production out of China,” a source told the news organization.
Foxconn’s investment in its Sriperumbur plant is expected to take place over the next three years and will reportedly add about 6,000 jobs. The factory currently makes Apple’s iPhone XR.
Apple accounts for about 1% of smartphone sales in India and iPhones are often seen as a status symbol, Reuters reports. The company’s move to build more phones in India would help it save on import taxes and make iPhones more affordable for local buyers.