Apple Foxconn's 'De-China' Strategy: 640 Billion KRW Investment in India Factory

Apple's largest partner, Taiwan's Foxconn, is opening two new factories in India. This is part of the 'China+1' strategy to add production bases outside of China.

On the 31st (local time), Bloomberg News, citing sources, reported that Foxconn is planning to build two new component factories in India as part of diversifying its production bases, with an investment of up to $500 million (approximately 640 billion KRW).

The new Foxconn factories are scheduled to be located in Karnataka, southern India, and one of the new factories will produce components for the iPhone product line. Sources said an official announcement on this matter is expected as early as this week.

Earlier, it was reported that Foxconn Chairman Liu Yangwei visited India on February 27 and met with Indian Prime Minister Narendra Modi to discuss investment cooperation plans, including the construction of new factories.

Prior to relocating factories to India, workforce restructuring was also carried out at the Chinese factories. The Central News Agency, citing Chinese video platforms and social media such as Kuaishou and Douyin, reported that Foxconn's Shenzhen factory and its partners significantly reduced the hiring of temporary workers, laid off existing full-time employees, and that dismantling of production lines was observed. Foxconn is reportedly advising existing full-time employees to take leave and has notified staffing agencies not to hire additional temporary workers. The Shenzhen factory, along with the Zhengzhou factory, which handles 80% of global iPhone production, is one of Foxconn's iPhone production bases.

Apple and its partners' move away from China accelerated last year. After workers at Foxconn's Zhengzhou factory, Apple's largest iPhone production base in China, faced a surge in COVID-19 cases, government lockdown policies, and protests over poor working conditions in October last year, causing supply disruptions, Apple demanded Foxconn to relocate production lines to India, Vietnam, and other locations.

This content was produced with the assistance of AI translation services.