A Foxconn iPhone plant may create 100,000 jobs in Bengaluru
What's the story
The growing tensions between the US and China have challenged China's position as the world's primary manufacturer. Companies like Apple are on the lookout for alternative options, and India has emerged as one. Now, Taiwanese electronics giant Foxconn, Apple's largest supplier, is planning to invest $700 million to build a factory in Bengaluru, India. This would boost India's share of iPhone assembly.
Context
Why does this story matter?
There have been talks about Apple expanding its manufacturing to India to offset its reliance on China. Companies that rely on China for manufacturing their products have been going through a tough time. Consecutive lockdowns and the US-China issues have put a dent in the supply chain. The production of iPhone 14 fell by six million units in 2022 due to issues in China.
Factory
Foxconn will make iPhone parts in the factory
Foxconn will manufacture iPhone parts in the upcoming factory in Bengaluru. The factory will be at a 300-acres site close to the airport in India's IT hub. It is possible that Foxconn might also make Apple handsets in the factory. The manufacturer may also produce parts for its electric vehicle business, which began very recently.
Employment
The factory will create around 100,000 jobs
The factory in Bengaluru will generate about 100,000 jobs. The company's factory in Zhengzhou, which is responsible for over 70% of global iPhone shipments, employs over 200,000 people. The Zhengzhou plant came under fire last year when employees protested against unpaid wages, strict quarantine measures, and the company's handling of the lockdown. This also affected iPhone production in China last year.
Telangana
Foxconn will set up an electronics manufacturing factory in Telangana
Foxconn is yet to confirm any details about its factory in Bengaluru. But that isn't the Taiwanese manufacturing giant's only upcoming factory in India. The company joined hands with the Telangana government to build an electronics manufacturing facility in the state. The factory in Telangana will also create 100,000 jobs. Foxconn is yet to finalize more details about the factory.
Importance
Foxconn's iPhone factory will be a big boost for India
Foxconn's iPhone factory will be a huge success for Prime Minister Narendra Modi and his government. The government has been offering several incentives to attract western investors and corporations. The government sees China's souring relationship with the west as an opportunity to narrow the tech gap between itself and the dragon. We will see how this plays out soon.