Foxconn is investing one other $500 million in its India enterprise because it ramps up its plans to broaden its chipmaking factories within the South Asian market that’s slowly changing into a key {hardware} hub for Apple.

In a inventory alternate submitting in Taiwan on Thursday, Foxconn stated its Singapore subsidiary is deploying the capital into the India entity, Hon Hai Technology India Mega Development Private Limited.

The transfer follows Foxconn, also referred to as Hon Hai, selecting up tempo to broaden its smartphone manufacturing capability in India as key associate Apple begins regionally producing the present technology iPhone models within the nation.

In late September, Apple began assembling the iPhone 14 models in India, regionally producing the present lineup for the primary time in the identical calendar 12 months on the earth’s second largest smartphone market.

Analysts estimate that Apple will flip India into a world iPhone manufacturing hub by 2025 because it slowly cuts its reliance on China, the place it has been producing the overwhelming majority of its units for over a decade. In a September report, JP Morgan analysts stated Apple will transfer 5% of world iPhone 14 manufacturing to India by late 2022 and broaden its manufacturing capability within the nation to produce 25% of all iPhones by 2025.

In a report Wednesday, Morgan Stanley analysts echoed many comparable estimations, saying, Apple’s purpose is to have India “contribute up to 10% of total iPhone production in 2-3 years.”

Foxconn additionally just lately signed a memorandum of understanding with the Indian state of Gujarat to arrange a $20 billion semiconductor and show unit within the coastal state that’s residence of Prime Minister Narendra Modi.

Foxconn stated it can deliver technical experience to the enterprise whereas Vedanta, recognized for its mining enterprise, will finance the venture, prime officers stated. The state of Gujarat will provide subsidies on capital expenditure and electrical energy to the venture.