Only a few weeks have passed since the new Congress-led administration in Karnataka entered office before the announcement.
According to the Minister for Large and Medium Industries, MB Patil, Taiwanese electronics company Foxconn, a significant Apple supplier, would begin producing iPhones in Bengaluru by April 2024. The state government would hand over the necessary land for the firm by July 1 to assist this, the minister said, according to India Today. The company wants to begin producing iPhones at its projected Devanahalli facility.
“The identified 300 acres of land at ITIR of Devanahalli would be handed over by July 1,” Patil said, adding that in addition, the government would guarantee providing 5 MLD of water, high-quality power, road connection, and other infrastructure amenities.
The declaration was made only a few weeks after the Congress-led new administration in Karnataka assumed power. An estimated 50,000 employment would be generated by the Rs 13,600 crore project. Foxconn has reportedly been requested to submit specifics on the skill sets it needs in potential recruits, according to the ministry. He said that as a result, steps will be taken to make training courses available to qualified people in order to help them become employable.
Foxconn has already paid the Karnataka Industrial Areas Development Board Rs 90 crore, or 30% of the cost of the land. The world’s largest electronics company has set the objective to finish the project in three phases and has set a target of 20 million (2 crore) units of production per year from the facility after the completion of three phases.
Following their meeting as part of the courtesy visit, the company’s representatives lead by George Chu informed the minister of their decision. Priyanka Kharge, Karnataka’s minister of information and technology, was also there.
Foxconn said this month that it has purchased a sizable plot of property in Bengaluru, a major centre for technology. The business is the largest producer of contract electronics in the world and a key supplier of Apple iPhone assembly. The business said in a statement to the London Stock Exchange that it had bought 1.2 million square metres (13 million square feet) of property in Devanahalli, close to the airport serving Bengaluru.
A new facility where Apple will “soon” produce iPhones would “about 100,000 jobs,” according to the former chief minister of Karnataka, Basavaraj Bommai, who made the announcement in March.
According to Reuters, Apple has been moving manufacturing away from China as a result of the nation’s stringent COVID-related limitations that have hampered the country’s ability to produce new iPhones and other electronic gadgets. In addition, the IT giant wants to prevent a blow to its company from escalating tensions between Beijing and Washington.
In India, Apple debuted its first retail locations in April of this year. Two outlets were opened by the iPhone manufacturer—one each in Delhi and Mumbai.
As the country’s smartphone exports rose to more than $11 billion, Union Minister Ashwini Vaishnaw recently stated that India was on its path to become a worldwide leader in the mobile devices category. Nearly $11.12 billion worth of mobile phones were exported from India, with Apple, the manufacturer of the iPhone, being responsible for around half of the shipments.
“With smartphone exports more than tripling to more than $11 billion, India is well on its way to overtaking the United States as the global leader in the market for mobile devices and contributing significantly to the country’s electronic exports. Vaishnaw was reported by the news agency PTI as stating, “This is a significant victory for PM Modiji’s ‘Make in India’ campaign.