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Foxconn Technology Group is expanding its business in India as Apple aims to diversify the iPhone manufacturing business in other countries. According to a report from Bloomberg, the Taiwanese company’s Indian subsidiary has acquired equipment worth $33 million from an Apple Inc. unit.
The purchases will reportedly be used for the “operational needs” of the company in the country. This is a huge indication of Foxconn’s intention to expand its operations in India as Apple aims to bring its iPhone manufacturing and assembly deals to other countries besides China. According to other previous reports, India currently produces 7% of iPhones globally, but Apple is reportedly planning to bump up the number to up to 18% in the next two years or by 2025. Other reports, however, say that India aims to increase it to 25%.
India’s government is also taking advantage of this, with Prime Minister Narendra Modi pushing chipmaking businesses to boost the country’s economy. A recent part of this is the expected closing of a deal involving Tata Group, which will take over Wistron’s iPhone factory in the southern Karnataka state. It is estimated to be worth over $600 million. Once finalized, this will make Tata the first local Indian company to dive into the iPhone assembly business.
Despite this expansion, the latest report from Bloomberg indicates that Apple is still hugely reliant on Foxconn. As the news outlet notes, the filing of the deal it viewed shows “a rare glimpse into Foxconn’s dealings with its biggest customer, which sometimes helps finance the cost of equipment that the Taiwanese company uses to make the majority of the world’s iPhones.”
