Foxconn plans $600 million India investment to make iPhone components, chip equipment

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Foxconn has announced that it plans to invest $600 million in two projects in the Indian state of Karnataka.

The first it to to make casing components for iPhones, the second to make chip-making equipment. Both moves signal the company’s interest in India as it looks beyond China.

Of the $600 million investment $350 million will go towards setting up an iPhone component facility, while Foxconn will jointly work with Applied Materials on a $250 million project to make chip-making tools.

Foxconn, the world’s largest contract manufacturer, assembles 70% of iPhones and has been looking to move production away from China because of COVID disruptions and geopolitical tensions.

The news from Foxconn follows similar moves by the likes of Micron to Amazon who have both announced that they are investing heavily in India, where consumption is growing.

The Indian Prime Minister Narendra Modi is keen to attract investors for semiconductor manufacturing and Foxconn’s collaboration with Applied Materials will look to manufacture semiconductor manufacturing equipment.

Foxconn is said to also be in talks with the government of Gujarat to set up a chipmaking facility in the western state.

India's Tamil Nadu state has also announced that Foxconn will invest $194 million in a new electronic components manufacturing facility that will create 6,000 jobs.