The Singapore subsidiary has invested in the Indian unit amid challenges with China’s zero-Covid stance.
Apple Inc.’s Taiwan-based partner, Foxconn announced on Thursday that its Singapore unit had acquired 4.08 million shares in its Indian subsidiary, Foxconn Hon Hai Technology India Mega Development Pvt Ltd, for $500 million.
The world’s largest global contract manufacturer for electronics plans to boost the workforce at its plant in Tamil Nadu to 70,000 by adding 53,000 more workers over the next two years, news agencies reported.
The plant, called Hon Hai Precision Industry Co Ltd, was opened in 2019 and has ramped up production ever since. It began producing the iPhone 14 in September, of this year.
In a September report, JP Morgan analysts said Apple will move 5% of its global iPhone 14 production to India by late 2022 and expand its manufacturing capacity in India to produce 25% of all iPhones by 2025.
It’s estimated that India will turn into a global iPhone manufacturing hub by 2025 as Apple cuts down its manufacturing operations in China after Foxconn’s production units in China faced challenges with China’s zero-Covid policies.
Foxconn founder Terry Gou had earlier warned China that its zero-COVID stance would threaten the position of the world’s second-largest economy in the global supply chain.
