Taiwanese firm Foxconn and Karnataka government have inked a pact wherein Apple’s iPhones will be assembled at a new plant in Karnataka. This plant will built in a 300-acre land factory in Bengaluru, capital of Karnataka. Karnataka Chief minister Basavaraj Bommai informed about this agreement by posting a video with Foxconn Chairman Young Liu on blogging website Twitter. The state’s investment promotion division said in a tweet that this step will generate 100,000 jobs in next 10 years.
According to the media reports, Apple partner Foxconn Technology group planned to invest around USD 700 million in this plant to boost the production. The delegation was welcomed by the ministers and later were taken to inspect the location for setting up the plant in Bengaluru.
The chief minister titled the video “Agreement signed with Foxconn, leading electronics major, to make a major investment in state after a detailed discussion with co’s C’man Young Liu”.
The Foxconn Technology Group has planned to invest USD 700 million in this project. The new plant will be opened near airport in Bengaluru. CM also added that this plant will create 1 lakh jobs for the people in the state. Currently, iPhone in India is assembled with Apple’s global supplier – Foxconn and Pegatron in Tamil Nadu and Wistron in Karnataka. The new site is also expected to make some parts for nascent EV business.
Apple has been shifting the production away from China after the outburst of Covid-19. The production of new iPhones has been disrupted due to strict covid restrictions in the country. Earlier in January, the Trade Minister of India said that Apple, which began iPhone assembly in the country in 2017 through Wistron and later Foxconn also joined. He said that India wants to account up for 25 percent of its production, which is now 5-7 percent.
Foxconn already assembles Apple devices in Chennai, and widened its production capability through Foxconn and Wistron. According to reports, the YoY manufacturing of iPhones in India has grown up to 196 percent since 2021.
The investment by Foxconn in India, shows how China is in danger of losing its position in the market of consumer electronic productions in the world. The Covid pandemic and the crisis with Ukraine has pushed a reconsideration of the global supply chain that could alter how electronics are produced globally.
The new production site in India is expected to generate 1 lakh jobs for the people in the state. Whereas, in China’s Zhengzhou the assembly plant employs 200,000 people at the moment, although the number surges during the peak production season. The plat may get changed as Foxconn is already under the process of finalizing the investment and project details.
India ha s provided the production incentives to Foxconn, which started the production in Tamil Nadu plant last year. Competitors like Wistron Corp. and Pegatron Corp. have also ramped up in India, while Jabil Inc. has started the production of AirPods in the country.
During the Mobile World Congress (MWC) 2023 in Barcelona, Qualcomm CEO Cristiano Amon announced that Apple may move towards manufacturing of in-house 5G modems chips in near future. Although, Apple iPhone 14 is currently using the Qualcomm modems for its mobiles has been attempting to go solo in the wireless connectivity market from several years. He said, “We are making no pans for 2024, my planning assumptions is we are not providing Apple a modem in 2024, but it is their decision to make.”
He added that he had told investor in 2021 that it did not expect to provide the modems for iPhone in 2023, but later they decided to continue it for another year.
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