Vital iPhone Assembler Foxconn Weighs $700M Investment In India, In A Bid To Migrate From China-US Tensions
Author: Anusuya Lahiri | March 03, 2023 07:44am
- Hon Hai Precision Industry Co Ltd (OTC:HNHPF) Foxconn Technology Group is eyeing investing $700 million in a new plant in India to ramp up local production.
- The Apple Inc (NASDAQ:AAPL) partner plans to build the plant to make iPhone parts on a 300-acre site close to the airport in Bengaluru, the capital of the southern Indian state of Karnataka, Bloomberg reports citing familiar sources.
- The factory may also assemble Apple's handsets, and Foxconn may use the site to produce some parts for its nascent electric vehicle business.
- The move highlighted a rush amongst suppliers to migrate their production base beyond China as geopolitical tensions flare up.
- Apple and other U.S. brands are canvassing their Chinese-based suppliers to migrate production to India and Vietnam after the pandemic vandalized global supply chains, with the Ukraine war serving as an additional headwind.
- The new production site in India will likely create about 100,000 jobs.
- Output at the Zhengzhou plant plunged ahead of the year-end holidays due to the Covid resurgence, prompting Apple to re-examine its China-reliant supply chain.
- India's local manufacturing drive and financial incentives have led Apple suppliers Foxconn, Wistron Corp (OTC: WICOF), and Pegatron Corp (OTC: PGTRF) to ramp up in the country.
- Price Action: AAPL shares traded higher by 1.08% at $147.49 premarket on the last check Thursday.
- Benzinga now provides actionable financial news and trading ideas for the Indian financial markets on in.benzinga.com.
Posted In: AAPL HNHPF PGTRF WICOF
