Hon Hai Precision Industry Co Ltd HNHPF Foxconn Technology Group earmarked over $1.2 billion for southern India's Karnataka state and looked to add two-component factories.
At least one of the new factories in Karnataka will produce Apple Inc AAPL parts, including for iPhones, Bloomberg cites familiar sources.
The additional investments are on top of a previously reported $700 million facility near Bengaluru's airport, which will likely assemble iPhones and create around 100,000 jobs.
The key Apple supplier's move to expand in India reflects the country's growing appeal as an alternative manufacturing destination amid U.S.-China tensions.
Prime Minister Narendra Modi's incentives to boost local manufacturing have attracted Apple suppliers like Foxconn and Pegatron, which have already set up iPhone assembly facilities in Tamil Nadu.
Other states like Karnataka have attracted investments with quick decision-making, reduced bureaucracy, and subsidies.
Also, a Foxconn subsidiary forged a deal with Tamil Nadu to set up a components plant with an investment of $195 million, likely to generate around 6,000 jobs.
Foxconn's decision indicates a potential acceleration of suppliers moving production capacity out of China and aligns with Western investors and corporations looking for alternatives amid regulatory uncertainties in China.
Apple's revenue in India grew by nearly 50% to ~$6 billion through March. India still accounts for less than 2% of the iPhone maker's global revenue during FY22.
Price Action: AAPL shares traded lower by 0.20% at $196.07 premarket on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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