Foxconn's Bengaluru factory to start production by April 1, 2024
India has been growing in stature in the Apple ecosystem. The tech giant has shown intent on increasing its footprint in the country. Taiwanese electronics giant Foxconn's move to buy 300 acres at Devanahalli near Bengaluru was seen in this light. Now, the contract manufacturing major, which is Apple's largest supplier, is planning to start production at its upcoming factory by April 1, 2024.
Why does this story matter?
Apple is heavily reliant on China for its manufacturing and assembly. However, the growing tensions between China and the US have put the company in a tough spot. It now has to look for alternatives to prevent disruptions to its trillion-dollar dominance. India has emerged as an attractive location for Apple. Foxconn's upcoming factory near Bengaluru is a testament to the firm's Indian ambitions.
Foxconn executives met representatives of Karnataka government
Last month, Hon Hai Precision Industry purchased 300 acres of land for Rs. 300 crore at Devanahalli on behalf of its subsidiary, Foxconn Hon Hai Technology India Mega Development. Today, the company's senior executives met representatives of the Karnataka government, including heavy and medium industries minister MB Patil. In the meeting, they discussed more details about the factory.
The government will transfer land before July 1
The Karnataka government has decided to expedite the project, said Patil. In line with Foxconn's decision to start production by April 1 next year, the government will transfer the land to the company before July 1. Foxconn has already paid Rs. 90 crore for the land located in the Information Technology Investment Region (ITIR) at Doddaballapur in Devanahalli.
Foxconn plans to manufacture 20 million mobiles per year
Foxconn plans to complete the plant's construction in three phases. It aims to manufacture 20 million smartphones every year. According to Patil, the factory is set to provide employment to 50,000 people. He said the government will provide "skill training to individuals" to meet the company's skill requirements. Foxconn also sought 50 lakh liters of water on a daily basis.
Apple aims to ramp up iPhone production in India
The new Foxconn factory is set to increase India's share in global iPhone production. India is currently home to 7% of iPhones. In 2021, it was just 1%. Earlier this year, union minister Piyush Goyal said Apple plans to move 25% of iPhone production to India. We are not sure about that, but things are heading in the right direction for the country.
