Foxconn, the prominent electronics manufacturer, is set to invest $500 million in new production plants in India, with a primary focus on manufacturing Apple’s AirPods.
This announcement was made by K.T. Rama Rao, the IT minister for Telangana, through a tweet confirming the groundbreaking of the first Foxconn plant in Kongar Kalaan.
Foxconn To Manufacture Apple AirPods in India; Invests $500 Million in New Plants
The initial investment amount has surpassed the previously leaked figure of $200 million, now reaching $500 million. This substantial investment is expected to generate approximately 25,000 jobs during the initial phase of operations.
K.T. Rama Rao’s tweet states, “Demonstrating the “Telangana Speed”, I am happy to announce the groundbreaking of first of Foxconn’s plants in Telangana at Kongar Kalaan today. With an investment of over $500M it shall create 25,000 direct jobs in first Phase. #Telangana #Foxconn”
While Foxconn has not officially commented on the minister’s tweet, there were prior concerns regarding the acceptance of the AirPods order due to the product’s lower profit margins compared to other Apple devices manufactured by Foxconn.
However, it appears that Foxconn’s decision to proceed with the order is aimed at strengthening its collaboration with Apple.
Foxconn Acquires 13 Million Square Foot Land Parcel in Bengaluru
This recent development is part of Foxconn’s ongoing expansion strategy in India. Earlier reports revealed that the company had acquired a 13 million-square-foot land parcel in Devanahalli, near Bengaluru, for around $37 million.
The intention behind this land purchase was to establish a new plant focused on enhancing iPhone component production, potentially creating about 100,000 employment opportunities.
The significant investment by Foxconn in establishing new manufacturing plants underscores its commitment to expanding operations and solidifying its partnership with Apple.
These plants will not only boost production capacity but also contribute substantially to job creation in the region. The Indian government’s efforts to attract foreign investment and promote manufacturing under the “Make in India” initiative have likely played a role in Foxconn’s decision to invest in the country.
Overall, Foxconn’s multi-million-dollar investment in new production facilities in India signals its confidence in the country’s potential as a manufacturing hub.
This move aligns with the Indian government’s objective of attracting foreign investment, boosting job creation, and furthering the growth of the electronics manufacturing sector.
