Apple is planning to shift China production to India: Report
What's the story
Apple's contract manufacturer Foxconn is set to invest up to $1 billion in its Chennai plant in India. The move, according to a report in Reuters, is geared towards shifting the Cupertino tech giant's China production to other regions, starting with India — where it already assembles some iPhone models. Here's all you need to know about it.
Investment
Foxconn to invest $1 billion over next three years
After speaking to people familiar with Apple and Foxconn's plans, Reuters has learned that the Taiwanese contractor is planning to invest up to $1 billion to expand its factory located in Sriperumbudur, near Chennai. The plant already manufactures several iPhone models, including the iPhone XR, and will reportedly receive the funds over the next three years for starting the production of other models, too.
Impact
This will create 6,000 jobs, boost Apple's India presence
The sources did not provide more details of the planned investment but emphasized that the move — if finalized — will create over 6,000 jobs in the country. Not to mention, this will also push Apple's presence in the world's second-largest smartphone market, India, where it has also been planning to open its physical and online stores.
Push
Ultimate goal is to move out of China
The effort to expand production in India comes as part of Apple's bid to move out of China, which has been at a trade war with the US — and causing business disruptions. "There's a strong request from Apple to its clients to move part of the iPhone production out of China," added one of the sources speaking to Reuters.
Comment
No word from the companies yet
As of now, neither Foxconn nor Apple has said anything about the plans to expand iPhone production in India. A Foxconn representative said they do not comment on matters related to clients, while Apple did not answer any of the queries around the expansion plan. Perhaps, the company will share more about it in the future.