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Hindi NewsBusinessApple Partner Foxconn Technology Group Buys Land In Bengaluru Worth 303 Crore Rupees, To Expand Manufacturing Footprint In India
Bangalore5 minutes in the past
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Apple Inc’s partner Foxconn Technology Group on Monday bought 13 million square feet (1.2 million square metres) of land in the Devanahalli area near the Bengaluru airport. According to reports, Foxconn’s subsidiary Hon High Technology India Mega Development Private Limited has informed the London Stock Exchange (LSE) about this.
The company bought land for Rs 303 crore
The company has bought this land in Bengaluru for $ 37 million i.e. Rs 303 crore. Foxconn Technology Group will build a manufacturing plant on this land. According to reports, the company will also assemble Apple’s handsets in this plant along with making parts. Foxconn can also use this site to produce some parts for the new electric vehicle business.
A Bloomberg report had earlier told that Foxconn Technology Group plans to invest about $ 700 million (about Rs 5.7 thousand crore) on a new plant in India to increase local production.
Apple’s manufacturing is being shifted from China to India
Apple’s manufacturing is being shifted from China to India due to rising tensions between the US and China. After geopolitical tension and the Corona epidemic, other American tech giants including Apple are also working on expanding their manufacturing facilities outside China.
With the construction of the plant, 1 lakh jobs will be created.
With the construction of this plant in India, about 1 lakh jobs are expected to be created. The company’s massive iPhone assembly complex in Zhengzhou, China, currently employs about 200,000 workers. However, this number increases during the peak production season. This investment of Foxconn in India is its biggest single investment till date.
iPhones being made in India since 2017
Apple started manufacturing iPhones in India in 2017 with the iPhone SE. It has three Electronics Manufacturing Services (EMS) partners – Foxconn, Wistron and Pegatron. After iPhone SE, manufacturing of iPhone 11, iPhone 12 and iPhone 13 was also done in India. Foxconn’s plant is in Sriperumbudur near Chennai.
Apple is part of the PLI scheme of the Government of India.
All three contract manufacturers of Apple are part of the Rs 41,000 crore Production-Linked Incentive Scheme (PLI) of the Government of India. It is only after this scheme that iPhone manufacturing has picked up in India. In 2020, the Government of India launched the PLI Scheme. Through this scheme, companies from outside countries get an opportunity to take advantage of local manufacturing, as well as earn incentives on it.
After geopolitical tension and corona epidemic, Apple reduced dependence on China and increased manufacturing in India as well.
Why does Apple make most of its iPhones in China?
Most of the iPhone is assembled in China. Is it because of the low cost of labor? According to a report by Investopedia, the average wage of an iPhone worker is $10 per hour. Top earners earn approximately $27 per hour.
According to Apple CEO Tim Cook, the reason for manufacturing in China is not the low labor cost. If that were the case, Apple could make its phones at much cheaper locations. The main reason, according to Cook, is the skill required in tooling engineering. They claim that the specific skill set is no longer available in the US, but China has the expertise.
Different prices in different countries
iPhones are available at the lowest prices in the US. Despite manufacturing in China, iPhones are sold more expensive than in the US. This is due to currency fluctuations and the high value added tax imposed in China. Similarly, despite manufacturing in India, the iPhone is sold much more expensive than the US. After America, Hong Kong, Japan are such places where it is available cheap.
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