Massive investment: Foxconn pledges $500 million in Telangana
Apple's partner Foxconn has reached an agreement with the officials to make a $500 million investment in Telangana, India. The company will build manufacturing plants in the state to keep its growth in the South Asian market while meeting Apple's demands.
Foxconn is working on expanding its reach in the South Asian market, especially in India. Reuters said that the company recently won a bid to manufacture the AirPods in the country earlier this year, and now it has agreed with local officials to invest $500 million in Telangana, India. Telangana's IT minister, K.T. Rama Rao, said that Foxconn's initiative will create 25,000 direct jobs in the first phase.
The local reports show that Foxconn also bought land worth $37 million in Bengaluru earlier this month. This means that Foxconn will continue to invest in India and build more manufacturing plants in the country. Recent reports showed that Foxconn is also involved in the upcoming Apple VR's supply chain.
“India has now reached a population of 1.4 billion people, translating to a large potential market for mid-to-high-end products which our clients are focusing on. Hence, it is necessary for us to continue to expand assembly and component operations in India. We see that more and more suppliers are investing in establishing plants in India and believe that this will become more prominent as time goes on. As for labor costs, India also has its advantages. Hon Hai will also continue to apply for government incentives, to increase its competitiveness," Foxconn chairman Young Liu said, according to TechCrunch.
Foxconn has a long history in India
This is not the first time Foxconn is building manufacturing plants in the country. The company made its entrance to India back in 2006. As the country grew, it became a popular place for some of the technology giants to invest in.
“During this time period, we have accumulated much experience in managing local employees, supply chain, and logistics, which are all important competitive advantages that have allowed us to move at a pace that is faster than the market. It has also allowed us to expand quickly. Apart from continuing this momentum, we will also be increasing production yield locally,” Liu said.
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