The Karnataka Government is set to start the Apple project with the world’s largest contract electronics manufacturer by 2024. The project is anticipated to be valued at ₹130 billion and claims to offer approximately 50,000 job opportunities.
The plant at Devanahalli located in the outskirts of the IT hub Bengaluru will be handed over to Foxconn by July 1 and the electronics manufacturer has allegedly confirmed that the firm plans on producing 20 million iPhones a year. Previously, China was the biggest electronics manufacturing market for Apple however, with budding tensions between US-Sino relations and the strict restrictions that were imposed during COVID have led the Cupertino-based tech giant to shift to India.
China holds 156 of the total 615 production facilities for Apple and that dependency of the tech giant was becoming a hindrance during and post the pandemic.
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In accordance with the electronics manufacturing sector, India has set up a pilot programme for electronics repair services where the aim is to have a hold on 20 percent of the market share.
Moreover, recently inaugurated Apple retail stores in Mumbai and Delhi within a month of their establishment have now become the highest revenue generating electronics store in the country. The stores were also a highlight of the brand completing 15 years in the country.
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In addition, the introduction of the Modified Semicon India Programme has increased the financial incentive of 50 percent of the project cost for companies, consortia, and joint ventures for setting up semiconductor fabs in India. According to sources, there are speculations that Vedanta – Foxconn JV is anticipated to re-apply for the government incentives under the scheme which is set to commence from June 1.
“Government has decided to invite new applications for setting up of Semiconductor Fabs and Display Fabs in India from June 01, 2023, under the Modified Semicon India Programme. The applications will be received by India Semiconductor Mission,” a statement by the Govt mentioned.
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