In 2020, India launched a US$6.65 billion scheme that offered incentives to global smartphone makers to move their production to the country. According to news reports, Apple contract manufacturer Foxconn Technology intends to invest around USD 700 million in a new plant in India to increase local production.
The decision sparked concern among social media users in China that the country was at risk of losing its primary role in Apple’s manufacturing supply chain, Xinmei Shen said in the news report. The South China Morning Post reported in January, citing a forecast by Taiwan’s Digitimes Research, that India is expected to assemble up to 50 percent of Apple’s iPhones by 2027, an increase from less than 5 percent currently.
According to the South China Morning Post report, the production will make India equal to the scale of production in mainland China. Foxconn, formally known as Hon Hai Precision Industry, scrambled to restore full production capacity at its manufacturing complex in Zhengzhou after severe disruptions that included worker protests and thousands of workers laid off amid the Covid-19 outbreak. There was an exodus of employees.
According to an official statement, on March 5, Foxconn announced a major investment in Karnataka that would create over one lakh jobs. 300 acres of land has been identified for this purpose near Bengaluru International Airport in Doddaballapura and Devanahalli taluks.
Young Liu met Prime Minister Narendra Modi during his visit to India. They discussed topics related to boosting India’s tech and innovation ecosystem.