Foxconn announced a massive investment in India as it moves to shift manufacturing out of China. There’s been a slow and gradual move to divest from the communist country and relocate manufacturing elsewhere. Foxconn faces pressure from it’s client base to move production.
Foxconn and Apple haven’t made any formal announcement related to this news but keeping global relocation quiet is very difficult. The story has undisclosed sources and we are unable to confirm it as true. The investment was hinted at by Foxconn leadership in recent communications.
Beijing and Washington have had very public disputes as relations between USA and China reach an all time low. The coronavirus has caused massive problems for every country and China has come off poorly. China has repeatedly tried to deny the origins of the virus while they’re inaction exposed neighbors and risked everyone’s safety.
The enormous investment is apparently planned for the Sriperumbur plant. This facility already manufactures the Apple iPhone XR. It’s located about 30 miles west of Chennai. Other models of iPhones will soon be manufactured at the site. An estimate of about 6,000 jobs will be added at the plant.
India has had recent clashes with China along the shared border between the countries. Longtime disputes over territory in the region have turned violent military clashes have left dozens dead. These tensions are surely weighing on decisions by Foxconn’s largest customer, Apple. The US based company is also under pressure to reduce it’s investments in China and India is a natural place for expansion.