Foxconn, a major Apple supplier, plans to invest nearly $500 million to build two parts factories in India, Bloomberg reported on Monday, citing people familiar with the matter.
These factories will be built in the southern state of Karnataka and at least one of them will produce Apple parts, including for iPhones, the report said.
The exact location of the new plant in the state has yet to be confirmed, with a formal announcement expected as early as this week.
In addition to the new parts factory, Foxconn has previously pledged to invest $700 million to build a factory near the Bengaluru airport in Karnataka state, which is expected to assemble iPhones and create about 100,000 jobs.
By 2025, about 25% of Apple products, including Macs, iPads, Apple Watches, and AirPods, will be made outside of China, up from 5% today, according to JPMorgan's 2022 estimates. In terms of production relocation, India, with its abundant labor resources and rising consumption power, has become a priority for Apple-which is why Apple suppliers have been ramping up their productions in India in recent years.
Besides Foxconn, other Apple suppliers such as PEGATRON and Wistron have also set up factories in India.