Foxconn, an Apple partner, contributes additional $500 million to the Indian economy

Foxconn is increasing its intentions to develop its chipmaking factories in the South Asian market, which is gradually evolving into a significant center for Apple products, by investing an additional $500 million in its Indian operations.

Foxconn said its Singapore subsidiary is investing the money into the India firm, Hon Hai Technology India Mega Development Private Limited, in a filing with the Taiwan stock exchange on Thursday. Tim Culpan of Bloomberg was the first to report on the file.

The action comes after Foxconn, also known as Hon Hai, accelerated the expansion of its smartphone manufacturing capabilities in India as significant partner Apple started domestically manufacturing the current generation iPhone units in the nation.

For the first time in the same calendar year in the second-largest smartphone market in the world, Apple started building the iPhone 14 models in India in late September.

By 2025, according to analysts, Apple will gradually reduce its reliance on China, where it has been manufacturing the vast majority of its gadgets for more than a decade, and turn India into a worldwide hub for iPhone production. In a research published in September, JP Morgan analysts predicted that Apple would shift 5% of the world’s iPhone 14 production to India by the end of 2022 and increase its capacity there to create 25% of all iPhones by 2025.

According to a study released on Wednesday by Morgan Stanley analysts, Apple wants India to “contribute up to 10% of total iPhone production in 2-3 years.”

Additionally, Foxconn just finalized a memorandum of understanding with Gujarat, the coastal Indian state where Prime Minister Narendra Modi resides, to establish a $20 billion semiconductor and display facility there.

According to top officials, Vedanta, a company known for its mining operations, will finance the project while Foxconn claimed it will contribute technological skills. Gujarat would provide the project with capital expense and electricity subsidies.