KEY iPhone manufacturer Foxconn is investing £1.12 billion to increase its focus on India, as Apple continues shifting production away from China amid geopolitical and tariff-related concerns.
The Taiwanese company said its Singapore-based subsidiary had acquired 12.7 bn shares in its India unit, resulting in an injection of about £1.12 bn.
The Indian arm, called Yuzhan Technology India, manufactures smartphone components in Tamil Nadu, according to local media reports.
No other details were shared in the filing made by Foxconn with the Taiwan stock exchange on Monday.
India has been working to position itself as an alternative manufacturing destination to China.
Efforts by New Delhi to offer subsidies worth billions have helped boost local electronics manufacturing.
Foxconn’s latest move comes weeks after Apple CEO Tim Cook said he expected most iPhones sold in the United States to have “India as their country of origin”.
Experts say the gradual move from China to India helps Apple reduce risks linked to tariffs and geopolitical tensions, including those stemming from former US president Donald Trump’s trade policy.
Apple’s growing focus on India also drew criticism from Trump, who said last week he told Cook: “We’re not interested in you building in India... we want you to build here.”
Foxconn is also expanding its manufacturing operations more broadly in India.
Last week, the Indian government approved Foxconn’s proposal to build a semiconductor facility in northern India in partnership with the HCL Group.
According to a government press release, the HCL-Foxconn joint venture will invest about £324 million in the plant.
The facility will manufacture display driver chips used in smartphones, laptops, cars and other devices.
The press release said the plant is planned to handle 20,000 wafers – thin slices of semiconductor material – each month, with a designed output capacity of 36 million units per month.
India has offered financial support to companies setting up chip manufacturing facilities in the country to build a reliable supply chain and address national security concerns.
(With inputs from agencies)
