Apple Supplier Foxconn Exits $19.5 Billion India Chip Project

Foxconn, the leading supplier for Apple and a global manufacturing giant, has decided to withdraw from a $19.5 billion joint venture project with an Indian conglomerate. The project aimed to establish semiconductor and display manufacturing facilities in the Indian state of Gujarat.

The move deals a significant blow to Indian Prime Minister Narendra Modi's vision of transforming the country into a prominent high-tech manufacturing hub on a global scale.

Driven by increasing geopolitical tensions and economic uncertainties, American companies, including Apple, have been urging their suppliers to diversify their supply chains beyond mainland China. While Foxconn has initiated the construction of several factory sites in India, this venture, worth $20 billion, would have been one of its largest endeavors.

The development occurs amidst the delicate relationship between U.S. and Chinese leaders, as well as business executives, who must carefully navigate the complexities of their interdependence while simultaneously criticizing each other.

The U.S. government and major technology firms have openly recognized Chinese technological advancements and manufacturing dominance as significant threats to national security.

As a result, certain U.S. corporations, which have long stated they are hampered by alleged Chinese state-sanctioned industrial espionage, are re-evaluating their operations in China as part of their risk mitigation efforts.

Despite this setback, Foxconn announced that it remains committed to establishing other manufacturing facilities in India. These include ongoing projects in Telangana and Bengaluru.