Foxconn, the largest contract electronics manufacturer in the world and a major assembler of Apple iPhones, has purchased a vast plot of land in Devanahalli, located near the airport in Bengaluru, India's tech hub. The acquisition, which spans 1.2 million square meters (equivalent to 13 million square feet), was disclosed in a filing to the London Stock Exchange on Tuesday. This move is part of Foxconn's strategy to expand its production capabilities outside of China, where strict COVID regulations have made operations more difficult.
In March, Basavaraj S. Bommai, the chief minister of Karnataka state, announced that Apple would establish a new facility in the state to manufacture iPhones, which would generate approximately 100,000 job opportunities. The timeline for the commencement of production was not specified, but it was stated that it would happen in the near future.
Foxconn acquires enormous 1.2 million sq. ft site in Bengaluru for over 1 billion rupees
In the previous month, Bloomberg News cited anonymous sources to report that Foxconn was intending to invest $700 million in a new plant in Karnataka. In a statement, Foxconn chairman Young Liu revealed that he visited the state to strengthen partnerships and explore opportunities for collaboration in emerging areas such as semiconductor development and electric vehicles. During his visit, he met with Prime Minister Narendra Modi to discuss a range of topics focused on enhancing India's technological and innovation ecosystem.
Since 2019, Foxconn has been producing Apple handsets at its facility in the southern state of Tamil Nadu, as part of its operations in India. In addition to Foxconn, two other Taiwanese suppliers, Wistron and Pegatron, are also involved in the manufacturing and assembly of Apple devices in India.
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In an effort to expand its presence in India, Apple has recently opened its first two retail stores in the country, with CEO Tim Cook personally inaugurating the outlets. The move underscores Apple's bullish stance on the Indian market, which boasts a massive population of 1.4 billion and the second-highest number of smartphone users in the world, trailing only China.
The largest company in the world in terms of market value is expanding its manufacturing operations in India.
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In September of last year, Apple announced its plans to produce its latest flagship model, the iPhone 14, in India, shortly after its launch. According to Bloomberg, India accounted for only seven percent of Apple's iPhone production last year, trailing behind other countries such as the United States, China, and Japan. Apple's growing investment in manufacturing operations in India is a positive development for Prime Minister Modi's "Make in India" initiative, which encourages foreign companies to manufacture their products within the country.
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