Foxconn, the world's largest contract electronics manufacturer and principal assembler of Apple iPhones, has acquired a vast tract of land in Devanahalli, near the airport for Indian tech hub Bengaluru, as it seeks to diversify production away from China. The acquisition of the 1.2 million-square-metre site was announced in a statement to the London Stock Exchange, with Foxconn Hon Hai Technology India Mega Development paying three billion rupees ($37 million) for the site, which is equivalent in size to more than 50 Manhattan city blocks. The move comes as both Foxconn and Apple seek to shift their manufacturing operations away from China after a bout of industrial unrest and diplomatic tensions with the US.
The acquisition is part of Foxconn's plan to invest $700 million in a new factory in Karnataka, according to reports by Bloomberg News. Apple CEO Tim Cook has been focusing on India, the world's second-most populous country and home to the second-highest number of smartphone users after China. Last month, the company opened its first two retail stores in India, a move that is part of its expansion of manufacturing operations in the country. Apple has been manufacturing handsets in India since 2019, and in September last year, the company announced that it would manufacture its latest iPhone 14 in India.
The acquisition of the Devanahalli site is also expected to boost Indian Prime Minister Narendra Modi's "Make in India" strategy, which urges foreign businesses to manufacture goods in the country. Foxconn's subsidiary will soon begin construction of a new facility in Telangana state, according to local media reports. Meanwhile, two other Taiwanese suppliers, Wistron and Pegatron, are also manufacturing and assembling Apple devices in India. With China still leading the world in terms of Apple product production, Apple's expanding manufacturing footprint in India is a step towards reducing its reliance on China.
