iPhone manufacturing plant to be built in Bengaluru

iPhone manufacturing plant to be built in Bengaluru Foxconn will invest 5.7 thousand crores for this, 100,000 jobs are expected to be created

Foxconn will invest 5.7 thousand crores for this, 100,000 jobs are expected to be created.

Foxconn Technology Group, an Apple Inc. partner, plans to invest around $ 700 million (roughly Rs 5.7 thousand crore) in a new factory in India to expand local production. This information was provided by Bloomberg in one of their reports.

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Because of escalating tensions between the United States and China, manufacturing is shifting to India. After geopolitical tensions and the Corona pandemic, other US tech behemoths, like Apple, are now looking to expand their production facilities outside of China.

The plant will be built on a 300-acre site

According to people familiar with the situation, the Taiwanese corporation intends to establish a facility on a 300-acre plot of land near Bengaluru’s airport. It will be able to assemble Apple devices in addition to producing factory parts. Foxconn may potentially utilise this facility to manufacture parts for its new electric car business.

100,000 jobs will be created

It is anticipated that the development of this factory in India would generate over 100,000 employment. Over 200,000 people are presently employed by the corporation in Zhengzhou, China’s enormous iPhon production facility. But, during the height of production, this number rises. Foxconn’s investment in India is the company’s largest single investment to date.

iPhones being made in India since 2017

With the release of the iPhone SE in 2017, Apple began producing Apple in India. Foxconn, Wistron, and Pegatron are its three Electronics Manufacturing Services (EMS) partners. After the iPhone SE, India also produced the iPhone 11, iPhone 12, and iPhone 13. The Foxconn facility located in Sriperumbudur, which is close to Chennai.

Apple is part of the PLI scheme of the Government of India.

The Government of India’s Rs 41,000 crore Production-Linked Incentive Program (PLI) includes all three of Apple’s contract manufacturers. The increase in iPhone manufacture in India only occurred following this plan. The PLI Scheme was introduced in 2020 by the Indian government. Companies from other nations have the chance to profit from local production and get incentives through this programme.

Why does Apple make most of its iPhones in China?

The iPhone is built in China for the most part. Is it because labour is so inexpensive? The average pay for an iPhone worker, according to a survey by Investopedia, is $10 per hour. A top earner makes around $27 per hour. Apple CEO Tim Cook claims that China’s low labour costs are not the cause for the company’s manufacture there. If so, Apple might produce its phones in nations with substantially lower labour costs. Cook claims that the primary cause is the expertise needed in tooling engineering. They assert that while China possesses the knowledge, the particular skill set is no longer available in the US.

Different prices in different countries

The US has the most affordable prices for iPhones. Although being made in China, iPhonaes are priced more there than in the US. Currency fluctuations and China’s high value added tax are to blame for this. Similar to this, the iPhone is sold for a much greater money outside of the US despite being manufactured there. After America, these affordable locations include Hong Kong and Japan.

Where is the iPhone manufactured?

According to a study on Apple’s supply chain published on February 15, 2023, India is also a nation where iPhonae accessories are produced. We already knew that Apple manufactures certain parts for the iPhone among other countries, but according to the Financial Times, the business has even worse quality control problems in India than it does in China.