Major Apple assembler Foxconn plans to invest an additional 139.11 billion rupees (US$1.67 billion) in India’s Karnataka state, the state government said in a statement on Tuesday, furthering its efforts to diversify away from CCP-controlled China.
Reuters:
The Taiwan-based company, which assembles around 70% of iPhones and is the world’s largest contract manufacturer, has been diversifying production away from China following COVID-19 disruptions and geopolitical tensions.
It has rapidly expanded its presence in India over the past year by investing heavily in manufacturing facilities in the south of the country.
In Karnataka state itself, the company announced in August an investment of $600 million in two projects to make casing components for iPhones and chip-making equipment.
Foxconn is also expected to start manufacturing iPhones in the southern state by April 2024 – a project expected to create around 50,000 jobs.
MacDailyNews Take: The less dependence Apple has on China, the better.
• The time to accelerate plans to move production out of China was November 9th 2016, but, hey, six years late is better than never! – MacDailyNews, December 4, 2022
• Diversify, diversify, diversify – especially away from CCP-controlled China. – MacDailyNews, October 19, 2022
• Apple cannot divest their dependence on China quickly enough (because they started years too late). – MacDailyNews. August 17, 2022
Former U.S. President Richard Nixon, who opened relations with China in the early 1970’s, just before his death in 1994 remarked on China: We may have created a Frankenstein.
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Great news. Making the move away from China for some manufacturing and assembly. Now, what about TSMC in Taiwan? They make the brains for all of Apple’s high end products. What happens (to the world) if commie China gets their filthy hands on Taiwan (and, by extension, TSMC)? Who’s gonna keep China in check? Joe? Elections have consequences.
I’m guessing TSMC will have to work quicker to build and enlarge their Arizona factory.
I thought the US factory was for lower end chips. Not the newer 3nm or upcoming 2nm chip fabs. Regardless, a factory is just that – a factory. It has to be run by two of Taiwan’s greatest strengths; brain power and the Taiwanese work ethic. I don’t see how the US can compete. Maybe Asia. India probably has the necessary engineer and workers willing to put in the work. US? Workers start getting ready to go home an hour before their shift finishes. Taiwanese get ready to go home hours after their shift finishes.
While I’d have to agree with you on the work ethic, moving tech to a new factory shouldn’t be the problem. It’s whether Apple will find the trade off of vastly higher costs for producing the chips in Arizona worth the shift out of Taiwan to prevent a takeover move by China. The costs of course will be passed on to consumers as Apple is probably reluctant to reduce their margins.