Foxconn Plans to Double India’s Investment and Labor Force in Next Year

Foxconn representative V Lee sent birthday wishes to Indian Prime Minister Narendra Modi on LinkedIn. The company stated that in the next 12 months, Foxconn’s investment and workforce in India will double.
V Lee’s post on LinkedIn states, “Next year, we will work even harder to present you with a bigger birthday gift, aimed at doubling India’s employment rate, foreign direct investment, and corporate size once again.”
This electronic contract manufacturer, headquartered in Taiwan, China, China, has great influence in India. Its factory in Tamil Nadu produces iPhones for Apple and employs approximately 40000 employees.
Last month, the government of Karnataka revealed that Foxconn would invest $600 million in two projects to produce iPhone shell components and chip manufacturing equipment, respectively. As part of this, Foxconn will invest $350 million to build an iPhone shell components division, collaborate with Applied Materials to create 12000 job opportunities, and invest $250 million in chip manufacturing tools.
Apple has decided to increase production in India, which will enhance India’s position as a manufacturing center for electronics and smartphones. China has been striving to become a manufacturing center, especially after several companies attempted to relocate out of China.
After the COVID-19 caused production disruption in China, Apple has been keen to transfer at least part of its manufacturing business from China to India. More than 300000 people have been engaged in the production of Apple products in China, and media reports suggest that Apple plans to transfer at least 40% to 45% of its manufacturing industry to India.

The company’s decision to produce in India may also be a result of its growing market share in the country. Although Apple had only a 2% market share in 2019, its iPhone is likely to gain a 7% market share by the end of this year.
Geopolitical factors have changed the relationship between China and the United States, which has also prompted Apple to decide to relocate its manufacturing industry out of China. Recently, there have also been reports that the Chinese government has implemented a ban on Apple products due to safety concerns. However, these reports were later denied by the Chinese government.
Foxconn has recently become a news focus due to its exit from a $19.5 billion joint venture with Vedanta and establishment of a semiconductor manufacturing department in India. However, media reports indicate that the company has separately applied for government incentives. It is currently unclear whether the doubling of investment includes its investment in establishing a semiconductor department.