A factory in the Indian state of Telangana has been established valued at $500 million by a Taiwanese-based company called Foxconn. It has been created in just under a month after Tim Cook, Apple CEO met with Narendra Modi, Prime Minister of India.
This factory is expected to produce extensive employment opportunities with an estimation of 25,000 workers being hired during its initial phase.
The move aligns with a larger trend observed among global companies like Apple, who are increasingly urging their suppliers to diversify production outside of China. This strategic decision reflects a desire to reduce reliance on a single country for cost-effective and dependable manufacturing.
Foxconn’s Chairman and CEO, Young Liu, took an extensive tour of India in February and March, indicating the company’s keen interest in exploring potential investment prospects.
During the trip, Foxconn had conveyed to the local outlets that it did not enter any “binding, definitive agreements for new investments during this trip.” And despite their statement, on 2nd Mar, they entered into an agreement with the Telangana government as shown by Telangana’s IT minister K.T. Rama Rao’s Tweet.
Foxconn has not responded to this discrepancy when pressured for comment after the agreement.
Interestingly, reports from Bloomberg suggest that Foxconn has plans to establish yet another factory in the Indian state of Karnataka, situated in close proximity to Bengaluru.
The groundbreaking of the Telangana factory and Foxconn’s pursuit of additional manufacturing sites in India reflect the shifting dynamics of global supply chains amidst mounting geopolitical tensions between the United States and China.
As China endeavors to rebuild its industrial output following extensive COVID-19 lockdowns, international companies are increasingly diversifying their production locations, seeking stability and efficiency beyond China’s borders.