Apple supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, reports Reuters, quoting two unnamed “government officials with knowledge of the matter.” The article says this points to “a production adjustment as it faces disruptions in China.”
From Reuters: Taiwan-based Foxconn now plans to boost the workforce at its plant in southern India to 70,000 by adding 53,000 more workers over the next two years, said the sources, who declined to be named as the discussions are private.
The company’s issues in China involve shutdowns due to COVID, alleged horrible working conditions, and claims that Chinese rivals are poaching workers. In addition to India, Foxconn has signed a $300 million memorandum of understanding with Vietnamese developer Kinh Bac City to expand its facility in the north of the country to diversify and boost production, according to Reuters.
Regarding India, Apple is using the country’s PLI scheme to make the iPhone 13 locally and support future aggressive pricing, reports Canalys. The PLI program launched two years ago, offers a cash incentive for three to five years on the incremental sale of goods made in India over the determined base-year sales. Additionally, the identified beneficiaries are required to commit to a certain minimum investment in India.