Foxconn, the prominent Apple vendor, has finally confirmed its plans to commence iPhone manufacturing at its upcoming facility in Devanahalli, Karnataka, by April 2024. The announcement came after a meeting between Foxconn executives and Karnataka’s IT Minister, Priyank Kharge, and Minister for Large and Medium Industries, MB Patil.
The Karnataka government has committed to providing a 300-acre land parcel and necessary infrastructure facilities to Foxconn by July 1. With an investment of $1.7 billion (INR 13,000 crore), the project is expected to generate 50,000 job opportunities in the region and have the capacity to produce up to 20 million iPhones annually.
Kharge took to Twitter, stating that the investment from Foxconn will not only attract more businesses but also reaffirm Karnataka’s position as the top destination for industrial investments. Patil emphasized that the government would ensure essential amenities such as water, reliable power supply, road connectivity, and other infrastructure facilities to facilitate the manufacturing process.
The project will be executed in three phases, and while the construction is yet to begin, Foxconn has already paid 30% of the land cost (INR 90 crore) to the Karnataka Industrial Areas Development Board.
This development follows reports a few months ago that Foxconn was eyeing an investment of $700 million to $1 billion for establishing a manufacturing facility near Bengaluru. The establishment of the facility is expected to create job opportunities in the region and enhance the industrial infrastructure.
Foxconn’s investment in India comes as Apple looks to diversify its production outside of China due to the geopolitical tensions between the US and China. Additionally, attractive production-linked incentives (PLIs) offered by the Indian government have further enticed Apple and its suppliers to invest in the country. Other Apple ecosystem players like Jabil Inc. and Salcomp have already begun manufacturing components and scaling up production capacities in India.
Apple has significantly increased its iPhone production in India, tripling it to $7 billion in the financial year 2022-23. Moreover, Xiaomi has also announced its plans to produce wireless audio products and manufacture smartphones in partnership with Dixon in India. With Foxconn’s expanded investments, the local ecosystem is poised for further growth and development.
