Apple supplier Foxconn to shift investments from China to India

Foxconn is planning to expand its production capacity in India and reduce its reliance on China

The largest electronics contract manufacturer in the world, Foxconn, wants to increase its operations in India while minimizing its dependency on China. This strategic reorientation by Foxconn coincides with escalating hostilities between China and a number of nations, notably India, as well as growing worries about the world supply chain.

In order to increase the size of its current manufacturing facilities in India, the business recently disclosed plans to invest $1 billion there. Foxconn is already well-represented in India, where it makes smartphones and other electronic parts for well-known companies like Apple and Xiaomi. This growth will fortify its market position in India and take advantage of the nation's rising consumer demand and hospitable investment environment.

Several variables influence the decision to lessen reliance on China. First and foremost, it seeks to reduce the risks brought on by the recent surge in geopolitical unpredictability and the rising trade tensions between China and the United States. Foxconn can reduce any potential supply chain interruptions and provide better service to its international customers by spreading out its production facilities across various geographic areas.

Foxconn has been taking moves to gradually lessen its reliance on China while simultaneously aiming to expand in India. This action is consistent with the company's long-term plan to diversify its manufacturing base and lessen the danger of concentration from a single nation. To expand its production footprint, the corporation has already developed manufacturing facilities in nations including Vietnam, Mexico, and Brazil.

Foxconn is also aware of India's enormous potential as a centre for manufacturing. The country is a desirable location for businesses aiming to increase their production capacity due to its sizable population, skilled labour, and rising business accessibility. With its investment, Foxconn not only shows its belief in the Indian market but also backs the government's goal of Make in India.