Foxconn plans to invest $1 billion in India for assembly of iPhones

Foxconn

Earlier it was reported by Reuters that Apple supplier Foxconn will invest $1 billion in India to expand the factory for iPhone assembly.

According to the report by Reuters, one source that has direct knowledge of the matter told:

“There’s a strong request from Apple to its clients to move part of the iPhone production out of China,”

It means that Apple has been pushing the supplier to move the iPhone production out of China. This move will help Apple diversify the supply chain and will also help the company reduce its reliance on factories in Chinese. As the tension between the two countries grow it will be better for Apple if Foxconn starts mass production from India.

If this expansion might use India as an export hub. According to Neil Shah, who is a tech researcher in Hong-Kong, the labor in India is cheaper than china, and with gradual growth here Apple can set a supplier base and use the country as an export hub.

According to Liu Young-way, Chairman of Foxconn the company will ramp up the investment in India without any further details. This investment will create not only the iPhone models for Apple but also create a lot of benefits for India. It will create 6000 jobs and also produce several iPhone models.

Foxconn will set up the new plant in Tamil Nadu. It is rumored that Apple is trying to expand its presence in India. Apple is trying to open an online store in India and also has plans to open a retail store in Mumbai.

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