CHENNAI : Taiwan-based Foxconn, a contract manufacturer that assembles Apple iPhones as well as phones Xiaomi handsets, plans to invest $1 billion in Tamil Nadu over the next three years, a Reuters report said citing sources. It added that Foxconn plans to expand its plant at Sriperumbudur near Chennai with fresh investment that will generate over 6,000 jobs.The move is seen as Apple’s plans to shift iPhone production away from China and reduce its dependence on the country in the wake of the ongoing trade war between the US and China coupled with the rising anti-China sentiment after the coronavirus outbreak.Reuters had reported that there is a strong request from Apple to its clients to move part of the production base out of China and iPhone models made by Foxconn in China, to be made at India plant. Foxconn has another plant in Andhra Pradesh.
When The Sunday Standard contacted Foxconn International Holding’s India head and managing director Josh Foulger for his reaction on the issue, he remained tight-lipped. “We don’t have any comments on the issue,” he said. Notably, Foxconn Chairman, Liu Young-Way at the company’s annual general meeting held last month had hinted about ramping up investments in India .Another Apple contract manufacturer Wistron is also planning investments to scale up production in its plant in Karnataka as parts of its efforsts to diversify its supply chain.
Meanwhile, the government is also trying its best to attract global companies. Recently, the Centre has announced schemes offering five global smartphone makers incentives to establish or expand domestic production. Even the Tamil Nadu government has constituted a special investment promotion task force to attract investors from countries planning to relocate their manufacturing bases post Covid-19. However, state officials didn’t comment on the Foxconn development.