Karnataka government and Taiwanese firm Foxconn have inked a deal wherein the Apple iPhones would be built in a 300-acre factory in the state's capital Bengaluru. Karnataka Chief Minister Basavaraj Bommai tweeted about this latest agreement by posting a video with Foxconn chairman Young Liu.
The Chief Minister captioned the video, "Agreement signed with Foxconn, leading electronics major, to make a major investment in state after a detailed discussion with co’s C’man Young Liu".
The Foxconn plant will be opened near Bengaluru airport. According to the Bloomberg news agency Foxconn Technology Group has planned to invest about $700 million on a new plant in Bengaluru to ramp up local production.
CM Bommai added the deal is expected to create one lakh jobs.
Foxconn, Apple Inc's partner signed a letter of intent with the Karnataka government on Friday to establish the manufacturing facility within a period of five years.
Yesterday, the Karnataka CM wrote, "Apple phones to be built in the state soon. Apart from creating about 100,000 jobs, it will create a whole lot of opportunities for Karnataka".
The delegation of Hon Hai Technology Group (Foxconn) led by its chairman has inspected
the location is near Bengaluru International Airport.
At present, iPhones are assembled in India by at least three of Apple's global suppliers - Foxconn and Pegatron in Tamil Nadu, and Wistron in Karnataka.
Apple Inc is gradually shifting production away from China after the country's strict COVID-related restrictions disrupted the manufacturing of new iPhones and other devices in the country.
Foxconn's deal with the Karnataka government is touted to be the company's biggest single outlays to date in the country. The agreement between the two underscores how China’s at risk of losing its status as the world’s largest producer of consumer electronics. Apple and other US brands are leaning on their Chinese-based suppliers to explore alternative locations such as India and Vietnam.
India has offered financial incentives to Apple suppliers such as Foxconn, which began making the latest generation of iPhones at a site in Tamil Nadu last year. Smaller rivals Wistron Corp and Pegatron Corp have also ramped up in India, while Jabil Inc has started making components for AirPods locally.
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