Foxconn plans to invest $500mn in 2 more factories in India, denies signing $194mn deal with TN

Foxconn Technology Group, Apple Inc.’s main supplier, is planning to invest approximately $500 million to establish two component factories in India as part of its efforts to diversify away from China. At least one of the factories, to be built in the southern state of Karnataka, will focus on producing Apple parts, including components for iPhones, according to sources familiar with the matter. An official announcement is expected soon. Foxconn’s growing footprint in India The move comes as Apple suppliers, including Foxconn, have been increasing their presence in India due to incentives provided by Prime Minister Narendra Modi to boost local manufacturing. States like Karnataka have also attracted companies with streamlined decision-making processes, reduced bureaucracy, and subsidies. The increasing investments by Foxconn in India highlight how the country has emerged as a popular destination for manufacturers seeking an alternative to China, especially amid rising tensions between the US and China. The global supply chain has been undergoing a shift, accelerated by the Covid-19 pandemic and geopolitical conflicts like the war in Ukraine, potentially leading to a transformation in electronics manufacturing. More investments inbound In addition to the new component factories, Foxconn is also investing $700 million in building a plant near Bengaluru’s airport in Karnataka, which is expected to assemble iPhones and create around 100,000 jobs. The move suggests that suppliers may relocate production capacity from China more rapidly than anticipated, providing a significant boost to India’s efforts to close its technology gap with China. Western investors and corporations are increasingly turning away from China due to concerns about the country’s regulations, slowing economy, and US trade restrictions, presenting an opportunity for India to attract more investment. No deal signed with the Tamil Nadu government, says Foxconn It appears that there is conflicting information regarding the investment announcement made by the Tamil Nadu government and Foxconn. According to reports, Foxconn’s subsidiary FII has denied signing any deal with the Tamil Nadu government for a $194 million investment in an electronic components manufacturing facility. This contradicts the initial announcement made by the Tamil Nadu government about the investment by the iPhone manufacturing company. As of now, there may be uncertainty surrounding the actual status of the investment deal. Further updates or clarifications from both parties may be needed to confirm the details of the investment agreement. Despite the denial by Foxconn’s subsidiary FII, government officials in Tamil Nadu have asserted that the announced manufacturing unit will indeed be established in the Kanchipuram district, near Chennai. The Tamil Nadu government made the announcement on July 31 and stated that the factory is expected to generate around 6,000 jobs. Given this information from government officials, the situation remains unclear, and further updates or statements from both parties may be required to clarify the situation surrounding the investment deal.