Apple suppliers commit $900 million to Indian manufacturing

What you need to know

• Apple's manufacturing partners are doubling down on investment in India.
• Foxconn, Wistron, and Pegatron will invest $900 million over the next five years.
• India is pushing for heavier investment through a series of favorable incentives linked to production.

Apple's top three manufacturing partners plan to invest $900 million in India over the next five years, according to reports.

From Reuters:

Three of Apple Inc's top contract manufacturers plan to invest a total of almost $900 million in India in the next five years to tap into a new production-linked incentive plan, according to two sources familiar with the matter.

Foxconn, Wistron and Pegatron all plan to make investments under the scheme, said the sources, who asked not to be named as the discussions are private.

As the report notes, India has a new production-linked incentive scheme, thought to be worth $6.65 billion. The scheme will pay manufacturers to onshore operations in the country, rewarding them with cash.

It has previously been reported that Apple is investing heavily in manufacturing the country and pushing suppliers to help diversify its supply chain. It was reported in the summer that Apple had started making the iPhone 11 in India, the first time a flagship iPhone has been made anywhere outside of China. Reports suggest similar plans for the iPhone 12.

Main partner Foxconn accounts for more than half ($542 million) of the investment, with Wistron and Pegatron making up the rest. Whilst not all of this will be dedicated to Apple manufacturing, the report says "the vast majority" of the money will help expand iPhone manufacturing in the company.

The report again notes how the PLI scheme aims to turn India into a manufacturing hub for export, however earlier reports note there are no specific proposals in place for this as yet.

iPhone 12 factories in China have recently upped their production to 24 hours a day in the run-up to the launch of Apple's hotly-anticipated new device.

Apple suppliers commit $900 million to Indian manufacturing posted first on http://bestpricesmartphones.blogspot.com