Foxconn, a major supplier of Apple, has announced it will be investing a further $600m (Rs49.5bn) in India for two manufacturing plants for iPhone equipment – as global leaders increasingly look to decrease their dependency on China.
The Taiwan-based company said it will be investing around $250m on a project to manufacture semiconductor equipment in the southern Indian state of Karnataka, as well as another $350m to set up a plant to manufacture iPhone casings.
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Foxconn said the investment in India will create 13,000 jobs.
MB Patil, Karnataka Minister of Infrastructure Development, said: “The industrial and investment policies of the state government are conducive to nurturing an ecosystem favouring the growth of industries.”
“The talks held with the company chairman were fruitful,” Patil added.
The announcement follows several from electronic manufacturers investing in India, as the Prime Minister Narendra Modi looks to make India a global chip powerhouse.
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By GlobalDataIndia is hoping to take advantage of a push for alternative production locations outside of China, as tensions between the US and Beijing increase.
Foxconn signed another deal with the Indian state of Tamil Nadu on Monday, agreeing to invest just under $200m to open a new electronic component plant, Investment Monitor reported.
The new plant is expected to open in 2024 and is estimated to create at least 6,000 jobs.
US based companies have also been flocking to India. US memory chip giant Micron announced plans in June to build a build a semiconductor assembly and testing plant in the country.
Micron pledged an $825m investment in the project and has confirmed the entire project will cost $2.75bn. Half of the cost will be reportedly split with central government, as part of Modi’s incentives to entice production in the country.
