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Why Foxconn plans to diversify from China | DW News

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China may have scrapped its zero-COVID policy — three years of strict lockdowns that caused supply chain delays and stymied economic growth — but that hasn't stopped Apple's top supplier from seeking out alternative production sites, including in India.

Foxconn, which makes iPhones for the US technology company, was forced to cut production during the peak season last fall when many Chinese workers at its factory in Zhengzhou went down with the virus. The company locked thousands of staff inside the facility to avoid a government shutdown, which fueled angry protests.

Geopolitical issues, including concerns over a possible Chinese invasion of Taiwan, are also a growing concern for many manufacturers in China, including Foxconn, as firms could be vulnerable to any future Western sanctions imposed on Beijing.

"Technology vendors are looking to diversify their supply chains out of China and reduce the risk of having all production reliant on one country, where relationships with the US are problematic," Ranjit Atwal, research director at Gartner, told DW.

Why India?
India has many advantages. The country is on course this year to be the world's fastest-growing economy. It also has a huge young workforce — around 44% of the population is aged between 18 and 25. Indian minimum wages are a third or half of that in China.

Foxconn, which first entered India before the pandemic to produce lower-end iPhones, is now stepping up plans to expand into the South Asian country, according to media reports.

The Wall Street Journal said last week that the Taiwanese electronics giant is set to triple the number of workers to as many as 100,000 at its facility in the southern state of Tamil Nadu to help ramp up iPhone production to around 20 million units.

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Europe
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DW News, foxconn, foxconn india
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