Apple has its eyes on India as the next major market to dominate. The nation is also a big part of Apple’s plans to diversify product manufacturing outside of China. Foxconn, Apple’s iPhone manufacturing partner, just dropped out of a $19.5 billion chip deal in India, however.
For its part, Foxconn has downplayed its role in helping Apple branch out of China. Despite having factories in India and Vietnam, Foxconn is compelled to maintain China as where most of its business exists. That was the message recently when Foxconn kicked off a hiring spree in the nation ahead of the iPhone 15 debut.
New today is Foxconn’s announcement that it is pulling out of a nearly $20 billion deal to develop semiconductors in India with Indian company Vedanta. Reuters cites sources that point to multiple reasons for the deal falling apart:
A source familiar with the matter said concerns about incentive approval delays by India’s government had contributed to Foxconn’s decision to pull out of the venture. New Delhi had also raised several questions on the cost estimates provided to request incentives from the government, the source added.
Vedanta says it will seek out additional partners now as it remains fully committed to developing a chip foundry in India.
Apple CEO Tim Cook and India Prime Minister Modi have a long-running relationship that focuses on manufacturing and Apple’s business in the nation of over 1.4 million people.
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