Apple’s manufacturing partner, Foxconn, is said to be spending over $5 billion on building factories in India
Apple’s main manufacturing partner, Foxconn, has reconfirmed their intentions to open production facilities in India, with officials telling ministers from the state of Maharashtra that they will invest $5 billion in opening new facilities within the country; with Maharashtra Chief Minister, Devendra Fadnavis, said to be liaising with Foxconn to help find a suitable location for Foxconn’s new facilities.
While India is certainly a hot country for Apple manufacturing at the moment, Foxconn is also showing a great deal of interest in opening facilities in the United States, with company chairman Terry Gou reporting US based production could create up to 50,000 jobs.
Earlier this month, India’s Information Technology Minister, Priyank Kharge confirmed that Apple will begin manufacturing iPhones in Bangalore, the capital of India’s southern Karnataka state by April 2017, adding that the state shall help Apple in the future if they wish to further expand their manufacturing operations in the region.
Currently, India has a lot of growth opportunity for Apple. – With it’s rise in the middle class and ever growing population, this market could potentially be a goldmine for Apple. – Apple, alongside other retailers, must source 30% of its components locally, though Bloomberg claim the country is relaxing those rules so technology companies can operate stores for three years before meeting that requirement.
Today’s report suggests Foxconn wishes to simultaneously open production facilities in both countries, however it’s not clear exactly what would be built in either location.