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Thursday, February 29, 2024

Foxconn Apple supplier is seeking semiconductor and electric car deals in India

Apple supplier Foxconn said it sought Indian cooperation partners in areas such as chips and electric vehicles after its chief executive concluded his visit to the country.

Taiwanese company Foxconn intends to expand its operations with the South Asian giant after severe supply disruptions in China last year. The company has been recovering from a crash earlier this year.

“India is a country with a large population,” said Young Liu, the company’s chairman and chief executive, in a statement on Saturday. “My trip this week supports Foxconn’s efforts to deepen partnerships… and seek cooperation in new areas such as semiconductor and electric vehicle development.”

He added that Foxconn would continue to communicate with local authorities to find the most profitable development opportunities for the company and all stakeholders.

The company best known for making Apple’s iPhone (AAPL) is one of the largest electronics manufacturers in the world. Now expanding into other areas, including electric vehicles.

Liu did not disclose any investment spending in India during his trip, including meeting with Prime Minister Narendra Modi.

The company already has factories in Andhra Pradesh and Tamil Nadu.

On Friday, the investment promotion office in the southern Indian state of Karnataka said Foxconn had announced a significant deal there, and 300 hectares of land had been allocated for a facility. He said the investment would create 100,000 jobs in the state over 10 years.

According to a Bloomberg report citing unnamed sources, the company plans to invest around $700 million in a new factory in Bengaluru, the capital of Karnataka, to manufacture iPhone components.

India is emerging as an attractive alternative to China for companies like Apple. One of India’s top ministers, Piyush Goyal, said in January that Apple plans to increase production in the South Asian country to a quarter of its total from the current 5% to 7%.

For years, Apple has relied on its extensive manufacturing network in China to mass-produce iPhones, iPads, and other popular products. But its reliance on the state was tested last year by Beijing’s strict zero-Covid strategy, which it swiftly dismantled last December.

Apple devices are manufactured in India by Taiwanese companies Foxconn, Wistron, and Pegatron.

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