Foxconn Hon Hai Technology India has acquired a 300-acre land parcel in the Information Technology Investment Region (ITIR) in Devanahalli taluk of Bangalore Rural District for an investment of Rs 300 crore. The iPhone manufacturer is planning to build the requisite infrastructure worth Rs 8,000 crore for setting up a manufacturing plant in the state capital of Karnataka. This move is aimed at diversifying the company's manufacturing base away from its largest market, China, and taking advantage of the benefits offered by India's production-linked incentive scheme.
Foxconn Chairman Young Liu had promised during his recent visit to the state to invest significant funds in setting up a new mobile manufacturing unit. The company has already received approval for production-linked incentives worth Rs 357.17 crore for mobile manufacturing in FY22, and it has also submitted incentive claims for FY23. Additionally, the company has entered into an agreement with the Telangana government to set up an electronics manufacturing facility worth $200 million in the state, which is likely to be used to manufacture iPods.
Apple has also been increasing its investments and growth in India, recording a four-fold jump in exports of iPhones to over Rs. 40,000 crore in FY23. The company's unit in Chennai, operated by Vietnam's Foxconn Hon Hai, is the largest in the country in a single location in any sector, employing 35,000 people on the shop floor.