Apple Partner Foxconn Buys Land In Bengaluru To Expand Production In India

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In a bid to diversify production away from China, Apple partner and Taiwanese multinational electronics contract manufacturer Foxconn on Monday acquired 1.2 million square metre or 13 million square foot land in the Devanahalli area near the Bengaluru airport in Karnataka, reported Focus Taiwan, the national news agency of the Republic of China. 

Foxconn subsidiary Hon Hai Technology India Mega Development paid $37 million for the site, the news agency AFP reported citing the company’s statement with the London Stock Exchange (LSE).

India accounts for 7 per cent of Apple's iPhone output, therefore the company is trying to increase its manufacturing presence here. Due to Covid-related restrictions and China's tense relations with the US, both firms are looking for a production location outside of China.

Not only this, Karnataka Chief Minister Basavaraj Bommai stated in March that the world’s largest company by market value would “soon” manufacture iPhones at a new plant in the state and create around 100,000 jobs.



Foxconn chairman Young Liu said in a statement that the objective of his Karnataka visit in the same month was to “deepen partnerships… and seek cooperation in new areas such as semiconductor development and electric vehicles”.

This, however, is not Foxconn’s only plant in India as the company has manufactured Apple handsets in India from its Tamil Nadu plant since 2019. Two other Taiwanese electronics manufacturers Wistron and Pegatron also manufacture and assemble Apple devices in India.



Another Apple supplier Jabil Inc has started manufacturing components of Apple AirPods in India, as per a 

Bloomberg 

report.

“Looking at the business in India, we did set a quarterly record, grew very strong, double digits year-over-year. So, it was quite a good quarter for us, taking a step back, India is an incredibly exciting market. It’s a major focus for us,” Apple CEO Tim Cook said during an earning call last week.

During his India visit, Tim Cook met Prime Minister Narendra Modi and committed to growth and investment in the country.



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