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iPhone Production to Start in Bengaluru Next Year

CIO Insider Team | Friday, 2 June, 2023
Separator

The Karnataka government informed a delegation from Hon Hai Technology Group (Foxconn) that the land parcel would be transferred to the iPhone maker within a month so that it could begin manufacturing at the proposed Bengaluru site on April 1 next year.

A high-level delegation from Foxconn, the world's largest contract manufacturer, met with industries minister MB Patil and IT/BT Minister Priyank Kharge in Bengaluru to discuss the progress of their future project.

According to a government, the future project will enable the new Congress administration to hasten the project, which will help add approximately 50,000 employment over time.

“Senior Management representatives of #Foxconn visited me to discuss the establishment of an #iPhone assembly plant at Devanahalli. We addressed project-related challenges, emphasizing the development of vital industrial infrastructure and maximizing the creation of employment opportunities,” Patil tweeted, adding Kharge was with him during the talks.

The company has requested five million litres of water each day. Patil guaranteed that the government will provide the facility with water as well as other necessities such as a road and power supply.

Karnataka is attempting to embrace modern labor standards similar to those used in several Western countries and China in order to emerge as a winner in the cutting-edge electronics and semiconductor sectors.

The government has requested information on the abilities that the government expects new recruits to have in order to assist the company in finding qualified candidates.

The Taiwanese iPhone manufacturer intends to construct the plant in three stages and produce 20 million iPhones per year. The corporation has already paid the Karnataka Industrial Areas Development Board (KIADB) Rs 90 crore, which accounts for 30 percent of the land cost.

In March, Karnataka's High Level Clearance Committee, chaired by the chief minister, approved Foxconn's application to establish a mobile phone manufacturing unit on the outskirts of Bengaluru for an investment of Rs 8,000 crore.

The new plant, located on a 300-acre tract near Bengaluru International Airport, will be Foxconn's largest in India.

Foxconn's enhanced India push is being driven by strong domestic demand for iPhones as well as a jump in exports from India as a result of global supply chain diversification away from China. In India, the company already manufactures iPhones for Apple at facilities in Tamil Nadu, Andhra Pradesh, and Telangana.

Officials anticipate Foxconn's investment will help Karnataka attract many more leading global electronics companies.

Indeed, Karnataka modified its Factories Act, 1948, earlier this year, extending an employee's maximum working hours per day from nine to twelve hours with breaks and six hours without a break. Another reform permits factories to employ women on night shifts while providing the required precautions.

Karnataka is attempting to embrace modern labor standards similar to those used in several Western countries and China in order to emerge as a winner in the cutting-edge electronics and semiconductor sectors.

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