Foxconn is one of the largest manufacturers of Apple products. The Bengaluru plant is expected to produce Apple productsin addition to other electronics.
Apple has steadily reduced its dependence on China and expanded its presence in India. This Bengaluru plant, along with other Foxconn investments in India, could reshape the company worldwide supply chain Dynamics.
Karnataka government sources said total investment in the state will exceed US$500 million and could exceed US$1 billion over time. The MoU signed in March between the Karnataka government and Foxconn said the proposed investment would occur between 2023 and 2027 and that the project would directly and indirectly employ about 1 lakh people. Foxconn Chairman Young Liu visited Bengaluru in March to meet state officials and tour the proposed country. The state government did everything it could to win the contract and even gave their Foxconn proposal a name – Project Elephant.
Foxconn is now represented in Gujarat, Karnataka, Telangana and Tamil Nadu. Tarun Pathak, Counterpoint’s research director, said Foxconn’s expansion in India is part of Apple’s strategy to expand its manufacturing footprint in the country.
Navkendar Singh, associate vice president of research firm IDC India, said Apple has been quite successful in terms of iPhone volumes in India over the past two to three years. There has been steady growth from 2.7 million iPhones in 2020 to about 4.8 million in 2021 and about 6.7 million in 2022. “This year it should be around 9 million,” he said.