Foxconn to Invest $1 Billion More in India

Foxconn secured board approval to invest at least another $1 billion to increase manufacturing capacity in India. This will add to a $1.6 billion investment the company announced last month.

The additional capital had been earmarked to aid the building of a 300-acre site near an airport in the city of Bengaluru, the state capital of Karnataka, which will mainly manufacture Apple devices. Foxconn stated in November that it would plough $1.6 billion into India for operational needs, without revealing details about new site facilities.

In August, various news outlets speculated Foxconn would invest an additional $500 million in two-component factories in Karnataka, adding to a $700 million investment it committed for an iPhone assembly plant in June. With its investment increasing to $2.6 billion in India, Foxconn is delivering on Apple’s push for its suppliers to diversify their operations by moving facilities outside of China.

The company has long manufactured devices in the East Asia country, but rising trade tensions between it and the US have meant Apple had to pursue a different strategy and shift assembly to alternative markets. Foxconn is also likely to put a portion of its investment in India towards devices and components for other customers.