Foxconn to invest $5 Billion on New Manufacturing Facility in India

Soon iPhone to have a back which says “Assembled in India”.

Foxconn has signed a deal with India’s Maharashtra state to invest $5 billion over five years on a new electronics manufacturing facility.

The announcement was made by Foxconn founder Terry Gou and Maharashtra Chief Minister Devendra Fadnavis after the signing of an accord in the state capital Mumbai. The Foxconn announcement will bolster Indian Prime Minister Narendra Modi’s “Make in India” campaign, which aims to turn Asia’s third-largest economy into a manufacturing powerhouse.

Gou didn’t say whether the company would make mobile phones at the facility; however, a recent Reuters report claimed that facility would be used for iPhone assembly.

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.

Notably, Gou said that he was looking to set up 10-12 facilities in various Indian states including factories and data centers by 2020.

Chief Minister Fadnavis said the Foxconn plant would employ about 50,000 people.