Taiwanese Apple contract manufacturers to invest $900 million in India: Report

Three Apple contract manufacturers from Taiwan are reportedly planning to invest $900 million in India in next five years under Indian government’s $6.65 billion production-linked incentive (PLI) scheme. According to Taiwanese media reports, vast majority of investment from Foxconn, Wistron, and Pegatron would be focussed on increasing manufacturing of iPhones in India.

Foxconn, world's biggest contract electronics maker, has currently two plants in Tamil Nu and Andhra Presh where it assembles Apple and Xiaomi smartphones. Taiwanese company started assembly line for iPhone XR in country in late 2019 and in July this year, it started production of its flagship iPhone 11 at Foxconn plant near Chennai. 

PLI scheme

PLI scheme, aimed at making India an export manufacturing hub, offers cash incentives to companies on an increase in sales of locally-me smartphones. Ministry of Electronics and Information Techlogy h anunced scheme to boost large-scale electronics manufacturing as sector suffers from lack of equate infrastructure, domestic supply chain and logistics, high cost of finance, inequate availability of quality power, and inequacies in skill development.  

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scheme would extend an incentive of 4 to 6 per cent on incremental sales of goods manufactured in India and covered under target segments for a period of five years subsequent to 2019-20 levels. In company’s annual general, Foxconn Chairman Liu Young-way h said y were fully pushing ahe with next steps in India, and maybe in a few months’ time, y will be able to reveal on next steps on company’s website and report back to everyone. 

In July, reports suggested that Foxconn h planned to invest $1 billion in India amid rising anti-China sentiments due to its expansionist behaviour and handling of coronavirus. Some of industries and conglomerates across world have been contemplating on grually moving out from China to reduce over-dependence on an authoritarian state. 

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