One source told Reuters that Apple has been pushing Foxconn and other suppliers to move production outside of China. The move will ultimately help the company in diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing amidst the ongoing trade war between China and the United States.
Foxconn’s investment is being made in the Sriperumbudur plant, which is responsible for producing some iPhone XR models. The improvements, which will take place over three years, include the addition of 6,000 new jobs and the production of other iPhone models in the plant.
Should Apple’s supply chain expansion into India prove successful, the company may begin using the country as an “export hub.”
With India’s labour cheaper compared with China, and the gradual expansion of its supplier base here, Apple will be able to use the country as an export hub,” Neil Shah of Hong Kong-based tech researcher Counterpoint said.
Apple is rumored to be expanding its presence in India by introducing an online Apple Store in the third quarter of 2020. The company is also reportedly working on opening retail locations in the country beginning with a store in Mumbai.