Foxconn Makes New Deal For Indian Facility

foxconn

In recent news regarding Foxconn, the company made a recent deal and signed a contract deal with India’s Maharashtra state to invest billions of monetary units over a five-year time span on a new electronic manufacturing facility, which could produce future iPhones.

Taiwan’s Foxconn, one of the world largest contract electric manufacturer and a key supplier to Apple, signed a deal with India’s Maharashtra state to invest $5 billion over five years on a new electronic manufacturing facility plant, this report came in from Re/code.

The source tells us some interesting stuff on the matter, as seen below.

“The announcement was made by Foxconn founder Terry Gou and Maharashtra Chief Minister Devendra Fadnavis after the signing of an accord in the state capital Mumbai.”

“The Foxconn announcement will bolster Indian Prime Minister Narendra Modi’s “Make in India” campaign, which aims to turn Asia’s third-largest economy into a manufacturing powerhouse.”

Reading over the report, there is no real indication if this new plant will consist of making future iPhone (like the iPhone 7 on up) or other Apple products. If they did, this facility could prove to be very useful. However, Gou didn’t say anything about the firm making mobile phones at the facility, but publication site Reuters does report that…

“India could help Foxconn mitigate accelerating wage inflation in China, where it makes the majority of iPhones, and base production sites closer to markets where its key clients want to grow. Lower production costs could also help Foxconn keep hold of Apple orders amid intensifying competition with nimble manufacturing rivals such as Quanta Computer Inc.”

In addition, Gou had noted that he was looking to build or set up 10 to 12 different facilities in various Indian states, which include factories and data centers by 2020. Furthermore, the plant is said to house 50,000 employees, which Chief Minister Fadnavis had said courtesy of Re/code.

Source info: ReutersRe/code