Apple supplier set to invest $500M in India in an attempt to diversify from China
Foxconn, Apple’s main supplier is set to invest close to $500 million in building two component factories in India. This is in addition to the $700 million investment in a Bengaluru plant that is expected to assemble iPhones and create around 100,000 jobs.
Apple has been re-examining its China-reliant supply chain ever since Covid-19-related disruptions caused output at Foxconn’s Zhengzhou plant (currently the world’s biggest source of Apple’s iPhone) to plunge ahead of the 2022 holidays. Foxconn’s recent investments in India is a reflection of India becoming a popular destination for manufacturers seeking an alternative to China.
With China’s unstable regulations, a sluggish economy, and trading restrictions imposed by the US, western investors and corporations are becoming increasingly disillusioned and seeking to diversify their supply chains. This shift in the global supply chain has been expedited in parts due to the Covid-19 pandemic, the escalation of tension between the US and China, and the conflict in Ukraine.