Foxconn claimed to be expanding iPhone production in India
Sources speaking to Reuters claim that Foxconn will invest US$1 billion into their manufacturing site near Chennai. The investment, which will be spread over three years, is said to be driven by an Apple directive to move a more substantial portion of iPhone production out of China.
Apple is likely concerned about their exposure to Chinese manufacturing in the midst of an ongoing trade war. Currently, this plant covers iPhone XR production, but this expansion would include the tooling needed for manufacturing other models. Up to 6000 new jobs could be created at the factory.
While spreading production across multiple countries can increase supply chain costs, the additional factories help reduce the impact of global political or medical events. Foxconn ceased iPhone production during the COVID-19 lockdown in India, and had stopped production for a short time in China too. The possible scenario of having no iPhone production facilities worked will be less likely if this insider information proves to be correct.