Focuscone, the supplier for the production of the American technology company Apple’s iPhone, has planned a facility in the Indian city of Bengaluru. It aims to increase the production of iPhone products in India.
Although China has ended its zero-covid policy, the strictest lockdown in three years has affected the supply chain. However, Apple is looking to diversify its production sites and India is a good option for this.
Last year, the Taiwanese manufacturer of iPhones for the American company, Focus Con, was forced to slow down production at its factory in Zhengzhou, China. To prevent the spread of corona virus in this area, the Chinese government imposed the strictest lockdown, so this company kept thousands of its employees in the company building to protect them from this lockdown. This resulted in massive protests.
Considering the threats of a possible Chinese attack on Taiwan, concerns about the security situation in the region and the possible sanctions of Western countries on China in the future, various business enterprises, including Focus Con, are looking for alternative ways.
Ranjit Atwal, research director at technology company Gartner, told DW, “Tech firms are looking outside of China to diversify their supply chains to focus on a single country or countries with which the US has problematic relations.” “Dependence on production can be reduced.”
India has an advantage in this matter in many respects. The country is among the fastest growing economies this year while also having a rich youth talent pool. The proportion of young people between the ages of 18 and 25 in the Indian population is relatively high, while the minimum wage in India is also one-third or half less than in China.
Focuscone, which started manufacturing iPhones in India before the pandemic, is now looking to expand its operations in India. The Wall Street Journal said last week that the Taiwanese electronics company is looking to triple the number of employees at its factory in Tamil Nadu to 100,000. From this one factory, this company will produce 20 million iPhones annually.
According to local media, Focuscon is also setting up a factory in Tamil Nadu’s neighboring state of Karnataka and the same number of employees will be employed in this factory. There are rumors in the local media that this new plant is being established with a huge amount of seven hundred million dollars.
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