Apple’s supplier, Foxconn is in thoughts to pour $ 500 million into its Indian unit, as a part of its chipmaking factories expansion plan in the South Asian market, which is gradually turning into a hardware hub for Apple.

Foxconn’s Singapore subsidiary is the one planning to invest the capital into the India entity, Hon Hai Technology India Mega Development Private Limited.

This enables Foxconn to ace its race in its smartphone production capacity expansion in India, while its key partner, Apple, indigenously commences to produce existing generation of iPhone units in the nation.

Likewise, this year Apple started to assemble the iPhone 14 models in India to produce the current lineup for the first time in the same calendar year in the world’s second largest smartphone market.

By 2025, analysts are positive about Apple turning India into a global iPhone manufacturing hub.

Apple has already begun severing ties with China, the country where the tech giant has been largely producing most of its devices for over a decade now.

A report from JP Morgan analysts states that Apple is likely to move five percent of global iPhone 14 production to India by the end of this year, while broadening its manufacturing capacity in the country to produce 25 percent of all iPhones by 2025.

Even recently this week, Morgan Stanley analysts recalled many similar estimations indicating Apple’s goal is to have India “contribute up to 10 percent of total iPhone production in two to three years”.

On the other hand, Foxconn went into a memorandum of understanding with Gujarat, the Indian state, to build a $20 billion worth semiconductor and display unit in the coastal state that is home of Prime Minister Narendra Modi.

For that matter, Foxconn proposed bringing technical expertise to the unit, with the financial assistance from Vedanta, known for its mining business, according to word on the street.

As for Gujarat, its role will be to offer subsidies on capital expenditure and electricity to the project.