Taiwanese manufacturing giant Foxconn has purchased a huge plot of land on the northern outskirts of Bangalore, according to a filing on Tuesday, as it works on diversifying production out of China.
Foxconn is one of the biggest contact electronic manufacturers in the world; it is also a key assembler of Apple’s iPhones.
Following not only strict Covid policies, but also ongoing diplomatic tensions between Washington and Beijing, both Apple and Foxconn have been looking for opportunities to diversify manufacturing outside of China.
The 1.2 million-square-metre (or thirteen million-square-foot) plot of land is located close to the Bengaluru airport, in Devanahalli, according to the statement released to the London Stock Exchange.
The plot is being paid for by Foxconn’s subsidiary company, Foxconn Hon Hai Technology India Mega Development, costing three billion rupees (USD 37 million).
Basavaraj Bommai, Chief Minister of Karnataka, said that Apple would “soon” begin manufacturing iPhones at a new plant in the state, creating “about 100,000 jobs.”
Foxconn has been manufacturing iPhones in India since 2019 at its Tamil Nadu plant. Wistron and Pegatron are two other Taiwanese contact manufacturers that assemble Apple products in India.
In recent years, Apple has been focusing heavily on India, both as a market and as a manufacturing hub, with Tim Cook visiting the country last month to inaugurate the first two Apple stores in the country.
Apple’s expansion serves as boost to PM Modi’s “Make in India” initiative, which has been urging foreign businesses to manufacture goods in the country.
