iPhone maker will spend $5 billion building factories in India

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India iPhone sales
Foxconn will spend big bucks in India.
Photo: Ste Smith/Cult of Mac

Apple supplier Foxconn has reconfirmed its intentions to build factories in India, with officials telling ministers from the state of Maharashtra that it will invest $5 billion building plants in the country.

Maharashtra Chief Minister Devendra Fadnavis is said to be working with Foxconn to help find suitable land in the state to fit the iPhone maker’s demands.

Foxconn first made the pledge to build factories in India 18 months ago, although recently reports have claimed the company had cooled on the idea. In recent times, post President Trump victory, there has been more discussion about Foxconn and other companies moving manufacturing to the U.S., leaving India on the back-burner.

A reported U.S.-based Apple and Foxconn factory could create 30,000 to 50,000 American jobs, claims Foxconn chairman Terry Gou.

However, it seems that Foxconn wants to pursue both strategies simultaneously, meaning the opening of both American factories and a new India factory.

While it’s not clear exactly what would be built in an Indian Foxconn factory, the manufacturer is one of a number of Apple suppliers viewing India as a potential location. A report from last year claimed that smaller Apple supplier Wistron has applied for fast-tracked approval to expand its factory in the Indian city of Bengaluru.

Pegatron, which has shared iPhone orders with Foxconn in recent years, has been named as a company interested in moving its manufacturing to India.

Apple has also shown an increasing amount of interest in India. At present, it is seeking financial incentives in the country in return for moving more of its contracting work there.

Tim Cook visited India for the first time last year, during which time he met with Prime Minister Narendra Modi. Apple has additionally announced plans to invest $25 million in a new office complex in India, while planning to open a new office in Indian tech hub Hyderabad that will focus on improving Apple Maps.

Source: Digitimes