Apple’s major supplier, Foxconn, is set to commence iPhone manufacturing in the southern Indian state of Karnataka by April of next year.
According to the state government, the project is expected to generate approximately 50,000 job opportunities.
Foxconn, based in Taiwan, is responsible for manufacturing the majority of Apple’s iPhones. Since 2017, the company has been producing older iPhone models at a facility located in the neighboring state of Tamil Nadu.
Recently, Foxconn acquired 1.2 million square meters of land near Bengaluru city in Karnataka, signaling its expansion plans. Bloomberg reported that the company intends to invest $700 million in a new factory in the state. However, the Karnataka government stated that the overall value of the project amounts to $1.59 billion.
The government announcement mentioned that the land for the factory would be handed over to Foxconn by July 1. The Reuters report stated that Foxconn aims to manufacture 20 million iPhones annually at the Karnataka plant.
Apple’s decision to diversify its supply chains and manufacture its flagship model in India is part of its strategy to reduce reliance on China amid increasing trade tensions between Beijing and Washington.
While most iPhones are currently made in China, Apple has been assembling some models in India through various suppliers, including Foxconn. However, India accounts for only 5% of total iPhone production.
Apple has faced challenges in the Indian market due to strong competition from more affordable South Korean and Chinese smartphones. In a bid to strengthen its presence in India, Apple CEO Tim Cook inaugurated the country’s first two Apple stores during his visit in April.