Foxconn Looks to Build iPhone Assembly Plant in India

Foxconn is in talks to build its first iPhone assembly plant in India, government officials tell Reuters.

India could help Foxconn mitigate accelerating wage inflation in China, where it makes the majority of iPhones, and base production sites closer to markets where its key clients want to grow. Lower production costs could also help Foxconn keep hold of Apple orders amid intensifying competition with nimble manufacturing rivals such as Quanta Computer Inc.

"Foxconn is sending a delegation of their officers to scout for locations in a month's time," says Subhash Desai, the Industries Minister of India's western state Maharashtra.


The company is reportedly planning to establish 10-12 facilities in India including factories and data centers by 2020. Desai says that Foxconn is looking to manufacture iPhones, iPads, and iPods in the country, but has yet to make a firm commitment to the plan.

Currently, Apple has 10% of the market share in India. If Foxconn does start making iOS devices in the country, Apple may be able to reduce prices and gain some tracking in the rapidly growing market.

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