Bad news for China, masterstroke by Modi govt as Apple supplier commits Rs 112500000000 to India due to….
Hon Hai Precision Industry Co which is the main assembler of Apple’s iPhones, has committed $1.5 billion to its Indian subsidiary as reported by The Economic Times. The investment was done by its Singapore-based unit, according to a stock exchange filing on Monday (May 19).
The funds may be utilized for Hon Hai’s current expansion in south India, where it is opening new facilities and increasing production capacity. However the company has not given any more information.
Hon Hai (Foxconn) this investment is done when Apple is also moving iPhone production outside China. It means despite Donald Trump’s objection Apple’ still has focus in India.
Apple may produce most of the iPhones sold in the United States from India by the end of next year. Recently US President Donald Trumphad asked Apple CEO Tim Cook to stop building new factories in India and manufacture in America instead.
Apple has been operating in Chinese factories for iPhone production since many years, but there was no iPhone manufacturing in the US. The company promised to invest $500 billion in the US and increase domestic hiring in the next four years.
Foxconn Investment In India
Apple vendor Foxconn has invested USD 1.48 billion or about Rs Rs 12,800 crore in its India unit in the last five days, the company said in a regulatory note.
Foxconn has made investment in its Tamil Nadu unit, Yuzhan Technology (India) Private Limited, through it Singapore-based arm.
Under this transaction, Foxconn Singapore Pte has acquired 9,999 shares at Rs 10 per share at a premium of Yuzhan Technology, taking the total transaction value to USD 1.489 billion.
Apple CEO Tim Cook has announced that Apple will source majority of iPhones sold in the US from India in the June quarter, while China will produce the vast majority of the devices for other markets amid uncertainty over trade tariffs.
Foxconn is reported to have more than doubled its revenue in India to over USD 20 billion (about Rs 1.7 lakh crore) in the financial year 2024-25 on account of a jump in iPhone production. Government representatives have said 15 per cent of iPhone’s global output comes from India at present.
Union Minister Ashwini Vaishnaw in April announced that mobile phone exports from India have crossed an all-time high of Rs 2 lakh crore in FY25, in which iPhone exports alone accounted for Rs 1.5 lakh crore.
(With Inputs From PTI)
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