Foxconn recently stated that it will reduce its reliance on mainland China as its primary source of income, according to the “Wall Street Journal” report. On Wednesday’s earnings call, Foxconn’s chairman said that almost 70% of the company’s current income comes from mainland China. However, the share of markets coming from outside of mainland China will rise in the future. According to those with knowledge of the situation, Foxconn intends to triple the number of staff to 100,000 by 2024. The company will also increase the yearly production of assembled Apple Phones in India to 20 million. Currently, the facility turns out 6 million iPhones annually.
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In addition to Tamil Nadu where Chennai is located, Foxconn aims to establish a new factory facility in Karnataka. The report claims that Apple iPhones and other devices will be produced here. Foxconn is also looking to build a new facility in Hyderabad as well as a silicon carbide manufacturing and packaging plant for the Indian semiconductor market. India is clearly becoming a very ideal choice in the eyes of many people as Apple Inc. try to speed up its supply chain shift in recent years. Although it is still rather hard to replace Chinese production. These low yield rates, according to certain supply chain players, are just temporary. With further development, there may be more iPhones produced in India in the future.
Apple and India can form a strong alliance
Apple’s home country is the U.S. but it can’t do any significant production there because of cost. China has been Apple’s production base for several years. However, with the growing tension between the U.S. and China, the company needs new alternatives. Similarly, for many years, India has been pushing for Made In India goods. Thus, it appears that Apple and India want the same thing. While Apple wants to move out of China, India wants to receive relevant brands.