Over the past year, Foxconn Technology Group has acquired from Apple the equipment necessary to establish production activities, with a total value of $33 billion.
These actions by the Taiwanese electronics giant are a technical preparation for the implementation of a plan to expand the scope of activities in India. The main iPhone assembler identifies Indian production sites as the most significant.
The official documentation on the purchase of equipment contains the wording that the Indian subsidiary of the Taiwanese manufacturing giant is concluding a deal for operational needs.
The documents help to form an idea of the specifics of Foxconn’s commercial interaction with its main client. The Taiwanese company will use the acquired equipment to manufacture most of the iPhones in the world.
In May, Indian Minister of State for Technology Rajeev Chandrasekhar announced that the American technology giant is interested in increasing production capacity in this country. He noted that the state has achieved positive results in the smartphone segment. Also, according to him, not only the iPhone manufacturer but also Samsung is interested in expanding its activities in India.
The Indian government has developed a program to stimulate the development of the technology sector. These measures proved to be effective, which confirms the fact that Apple and Samsung exported billions of dollars worth of smartphones to the country. A support plan has been developed for Dell Technologies, HP, and Lenovo to stimulate the expansion of the companies’ activities in India.
The Indian government also has an intention to build chip manufacturing plants in the country. India plans to attract manufacturers of these products. Local billionaire Anil Agarwal has a plan to step up and implement efforts in the field of chips worth $19 billion.
A month earlier, Apple CEO Tim Cook announced his intention to invest in the region during a meeting with Indian Prime Minister Narendra Modi. In the last financial year, the American technology giant tripled the volume of smartphone production at Indian factories. The total cost of released products is more than $7 billion.
Foxconn plans to invest about $700 million in the construction of a new plant in the state of Karnataka, located in southern India. This factory will produce products under the Apple brand.
As we have reported earlier, Foxconn Pulls Out of $19 Billion Chipmaking Project in India.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
