The state government of Karnataka in southern India has announced that Foxconn, Apple’s top supplier, will begin producing iPhones in the state by April of next year.
According to it, the project will generate about 50,000 jobs.
Foxconn, a Taiwan-based company, produces the majority of Apple’s mobile devices.
Since 2017, the company has been producing older iPhone models at a facility in the neighboring state of Tamil Nadu.
The company revealed last month that it had acquired 1.2 million square meters of land in Karnataka, close to Bengaluru.
According to Bloomberg, Foxconn intended to spend $700 million (£566 million) on a new factory in the region.
The project’s estimated cost was $1.59 billion, according to the Karnataka government on Thursday.
Foxconn has reportedly set a goal of producing 20 million iPhones annually at the plant in Karnataka, according to Reuters.
The move by Apple to produce its flagship model in India and diversify its supply chains away from China coincides with escalating trade disputes between the Washington and Beijing.
The majority of Apple’s phones are produced in China. Several Apple suppliers, including Foxconn, assemble iPhones in India. Currently, it produces 5% of all iPhones.
The company found it difficult to compete in India’s smartphone market, which is dominated by much less expensive South Korean and Chinese models.
Tim Cook, the CEO of Apple, traveled to India in April to open the country’s first two Apple stores.
Source-BBC
