In a move that continues to solidify India’s position as an attractive destination for global manufacturers, Apple’s chip supplier Foxconn Interconnect Technology (FIT) has decided to invest $500 million to set up a new manufacturing plant in the state of Telangana. In a joint statement, Foxconn and the Telangana government announced that the new facility will deliver “delivering world-class products to the markets,” and that it is a milestone for Foxconn’s global expansion strategy of diversifying its global manufacturing base.
According to KT Rama Rao, Telangana IT and Industries Minister, the manufacturing will commence “in the next one year,” while the construction work for the plant has been kicked off. At the ground-breaking ceremony at Kongar Kalan (for the production plant near Hyderabad), Rao said that the facility will create 25,000 direct jobs in its first phase itself. He announced the same in a tweet.
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 pic.twitter.com/PHThJWxsfT
— KTR (@KTRBRS) May 15, 2023
This development comes a few months after Foxconn had announced that it intended to invest in setting up a manufacturing plant in the southern state. At that time, it added that the setting up of the plant had the potential to generate one lakh jobs over the next ten years. The investment by Foxconn marks a significant milestone in the state’s journey towards industrial growth and serves as a testament to the government’s efforts in creating a business-friendly ecosystem. Foxconn already manufacturers iPhones in India, and it won a bid to manufacture the AirPods in the country earlier this year.
“This manufacturing plant will require significant investment, and it will enable us to better serve our customers, expand capabilities and create new opportunities for our team members. We encourage new people to join our team, and cannot wait to see new local talent to work with us,” Sidney Liu, CEO, FIT, commented on the matter.
The investment by Foxconn is set to bring a significant economic boost to Telangana, with the creation of thousands of job opportunities. The initial phase of the investment is expected to generate 25,000 jobs, providing employment opportunities for both skilled and unskilled workers in the region. This influx of employment opportunities will not only uplift the livelihoods of individuals but also contribute to the overall economic growth of the state. Moreover, the presence of a global manufacturing giant like Foxconn is likely to attract additional investments and foster the development of a robust supply chain ecosystem in Telangana.
Foxconn’s substantial investment in Telangana further strengthens India’s position as a preferred destination for electronics manufacturing. The country has been actively promoting initiatives such as “Make in India” to attract foreign investment and bolster domestic manufacturing capabilities. The presence of renowned manufacturers like Foxconn not only enhances India’s manufacturing ecosystem but also boosts the country’s reputation as a global hub for electronics production.
Furthermore, this investment also aligns with India’s vision of becoming a self-reliant and globally competitive manufacturing hub, and may prove to be beneficial for Apple – for which Foxconn is a premier supplier in the country. The Cupertino-headquartered tech giant has been slowly but steadily shifting the production of its devices away from China amidst tensions between Washington and Beijing, among other reasons. India has been tapped to be one of the chief areas for production, and analysts estimate that the tech giant could expand its iPhone manufacturing capacity in the country to produce 25% of all iPhones by 2025.
