Apple Supplier Foxconn To Invest $1 Billion In India

Foxconn plans to invest up to $1 billion to expand a factory in southern India where the Taiwanese contract manufacturer assembles Apple iPhones. Fox Business reports: The move, the scale of which has not previously been reported, is part of a quiet and gradual production shift by Apple away from China as it navigates disruptions from a trade war between Beijing and Washington and the coronavirus crisis. "There's a strong request from Apple to its clients to move part of the iPhone production out of China," one of the sources with direct knowledge of the matter told Reuters. Foxconn's planned investment in the Sriperumbur plant, where Apple's iPhone XR is made some 50 km west of Chennai, will take place over the course of three years. Some of Apple's other iPhones models, made by Foxconn in China, will be made at the plant.

Taipei-headquartered Foxconn will add some 6,000 jobs at the Sriperumbur plant in Tamil Nadu state under the plan. It also operates a separate plant in the southern Indian state of Andhra Pradesh, where it makes smartphones for China's Xiaomi Corp, among others. "With India's labour cheaper compared with China, and the gradual expansion of its supplier base here, Apple will be able to use the country as an export hub," Neil Shah of Hong Kong-based tech researcher Counterpoint said.

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Re:riiiight

[Dutch Gun]

The summary points out the differences. India has plenty of cheap labor while Chinese labor costs have risen, and with the recent souring of relations with China, it seems like a good idea to diversify your manufacturing sites. The article also indicates this is a request from Apple, as they don't want to be caught flat-footed if US-China relations take a serious dive.

So it's probably not a PR stunt like in the US.

Re:riiiight

[rahvin112]

It's not because of Apple. It's because India placed import restrictions on Chinese imports. India represents the largest market in the world outside China.

Import restrictions like India implemented can work when your market is that large.The USA could force such changes as well, but the wealthy block any attempt to implement them because higher paid wages on the low end would reduce CEO wages.

Re:riiiight

[ShanghaiBill]

It's because India placed import restrictions on Chinese imports.

It should be pointed out that these new restrictions are because China made military incursions into Indian territory last month, and 20 Indian soldiers were killed.

China rules at home through bullying and repression and seems to have a weird delusion that the same will work with their democratic neighbors. China demands "respect" rather than fostering cooperation. They have repeatedly misjudged how other countries would respond to their behavior.

China doesn't have a single real friend among the other nations of the world. Their few allies, such as Cambodia and Pakistan, are because of shared adversaries (Vietnam and India respectively) and not shared values.

Re: riiiight

[Type44Q]

Poor, dumb CCP shill - at least size-up the situation before you go running your mouth; your tactical awareness is nonexistent: Bill's voice is about the most reasonable and objective - possibly to a fault - on the site.

So I'll say again: dumb fucking shill.

Re:

[Canberra1]

Apple have no real suppliers - it is a vertical top to bottom operation, and where suppliers are also gagged, and stopped from flogging production over-runs or selling generics. Trouble is you only need one Foxconn plant, and then they will be highly automated. And assembly in India is fair considering its population. A couple of low value screwdriver factories is just window dressing. India still has problems - reliable power, port access, and a clean freak mentality that will take a while. Sometimes flo

When will Foxconn keep its agreement with Wisc.

[ITRambo]

Wisconsin provided huge incentives to Foxconn, who after getting a sweet deal, backed out and never made any display panels in their factory, mostly empty, in Racine County, Wisconsin. They seem to be a pretty sleazy bunch at Foxconn.

Re:

[coastwalker]

Foxconn is an excellent business, it maximises profit for it's shareholders through any legal or quasi legal means possible. Only big government regulation can force businesses to take account of stakeholders other than the shareholders. You choose your own government unlike the Chinese so you can hardly complain.

Re:

[marcle]

Wisconsin provided huge incentives to Foxconn, who after getting a sweet deal, backed out and never made any display panels in their factory, mostly empty, in Racine County, Wisconsin. They seem to be a pretty sleazy bunch at Foxconn.

Indeed, which makes it hard to tell if the deal with India is really about building factories or just another scam.