Apple's Most Trusted iPhone Manufacturer Is Leaving China Amid Labor Shortages


Apple's Most Trusted iPhone Manufacturer Is Leaving China Amid Labor Shortages


Taiwanese tech manufacturer Foxconn Technology Group, who is Apple’s biggest supplier across the pacific, is investing US$5 billion to build up to twelve factories and in India’s western Maharashtra state.

In an effort to boost ‘home-made’ manufacturing across the country through the “Make in India” program, the Indian government has been curating foreign tech companies, specifically smartphone makers, to invest in building facilities in its western region.

Chinese smartphone maker Xiaomi is leading the charge as it announced its first manufactured, or ‘Made in India’, product on Monday, the Redmi2.

Huawei Technologies’ was recently given security approval by the Chinese government organize the construction of a manufacturing facility for network equipment in the country but is still waiting for final approval from India’s ministry of commerce because of the company's international origin

Foxconn and Maharashtra have signed onto a $5 billion dollar agreement to build a gargantuan technology factory in the western state. With investment comes opportunity as the facility would create nearly 50,000 jobs Maharashtra chief minister Devendra Fadnavis stated after the agreement was signed.

Opportunity for India to inspirit a boost in growing local and global customers with their forthcoming ability to create international products like smartphones with Foxconn’s investment, is what has their eyes on the prize, despite the country’s major infrastructure problems.

Despite the sprinkling of technology factories across China, who employ close to a million workers, Foxconn CEO Terry Gou expects the number of young Chinese workers to decrease over the next few years. Because of the labor shortages Foxconn has experienced recently, factory workers are seeking work that offers the highest wages and have left Foxconn factories to find it.

Without any disclosure on exactly what products would be pumping out of Maharashtra state, Gou did mention on Saturday the length of the investment in Maharashtra being a period of five years.

With fervent belief in the region's ‘strong talent’, Foxconn’s investments in manufacturing will include research and development into robotics, with potential future investment in Indonesia.

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