Foxconn Technology, a key supplier for Apple, has disclosed its intention to invest more than $1.5 billion in a construction project in India to address operational requirements, as outlined in Taiwanese security filings on Monday.
The substantial $1.541 billion investment was channeled through Foxconn's subsidiary, Hon Hai Technology India Mega Development, a registered entity in India's Maharashtra state since 2015, according to Taiwanese securities filings and Indian corporate records, per CNBC.
Simultaneously, a filing from the same subsidiary indicated an equivalent budget in Indian rupees for a construction venture aimed at fulfilling operational needs.
Confidence in India
Foxconn, with significant operations in mainland China, plays a critical role in Apple's iPhone manufacturing. The company faced challenges when COVID-19 lockdowns disrupted production in 2022, prompting Apple suppliers, including Foxconn, to reconsider their heavy reliance on China.
The firm has announced several Indian projects, including a $600 million Karnataka project and a $500 million Telangana facility, amid geopolitical uncertainty.
Foxconn withdrew from a $19.5 billion chipmaking joint venture in India a few months ago, claiming a "mutual agreement." Despite this, Foxconn expressed confidence in India's semiconductor industry ambitions.
Foxconn's Chairman, Liu Young-way, emphasized India's potential in an earnings briefing in August, stating that the company views its multi-billion-dollar investment as just the beginning, according to a CNA report.
Apple has experienced robust demand for its high-end products, including the iPhone 15 Pro and Pro Max, leading to delivery delays in various countries this year. The top-tier Pro models have encountered longer shipping times compared to the more affordable base versions of the smartphone, according to Barron's.
As Foxconn expands its footprint in India, this strategic move not only aligns with Apple's ongoing efforts to secure its supply chain but also contributes to India's aspirations to become a prominent hub for electronics manufacturing and semiconductor production.
Apple Facilities Facing Climate Change Risks
In a comprehensive analysis by Bloomberg Opinion, a paradox within Apple's environmental commitment comes to light. The scrutiny of the company's extensive supply chain, spanning over 400 facilities across nearly 30 countries, reveals vulnerability to the climate change effects Apple aims to combat.
The analysis, drawing insights from Apple's supplier reports and global data on power generation, weather patterns, flood zones, economic impact, and carbon emissions, underscores that regions most susceptible to climate change align with Apple's manufacturing hubs.
This risk is not exclusive to Apple, as major electronics players like Samsung, Sony, and Dell also source from suppliers in these climate-vulnerable regions. The belt spanning Asia from India to Japan is notably prone to intensifying natural disasters due to global warming, precisely where Apple has established a significant manufacturing presence.
While Apple distinguishes itself with a commitment to transparency in disclosing working conditions and environmental impacts, the paradox emphasizes the intricate challenge faced by companies with vast supply chains as they navigate the convergence of environmental sustainability and operational resilience in the context of climate change.
The global tech giant, led by CEO Tim Cook, has been a longstanding advocate for environmental sustainability, with climate action ingrained in the company's ethos. Apple has asserted carbon neutrality across all its facilities since 2020 and touts a 45% reduction in emissions since 2015.
Cook boldly declared that by 2030, all Apple devices would achieve a net-zero climate impact.
