Foxconn, the Taiwanese electronics manufacturer and major Apple supplier, has purchased a large piece of land near Bengaluru, India, as part of its efforts to diversify production away from China. The move comes as both companies aim to reduce reliance on Chinese manufacturing due to various challenges, including Covid-related restrictions, labor disputes and geopolitical tensions with the United States.
The acquisition covers a vast area of 1.2 million square meters (13 million square feet) in Devanahalli, close to Bengaluru’s airport. Foxconn’s subsidiary, Foxconn Hon Hai Technology India Mega Development, will pay three billion rupees ($37 million) for the site, equivalent to over 50 Manhattan city blocks. Additionally, another unit of Foxconn is obtaining land use rights for a 480,000-square-meter site in Nghe An province, Vietnam.
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The move aligns with the plans announced by the Chief Minister of Karnataka state in March, stating that Apple would soon commence iPhone manufacturing at a new facility, generating approximately 100,000 jobs. Bloomberg News also reported that Foxconn intended to invest $700 million in a new factory in Karnataka.
