Karnataka Govt. in Talks with Apple to Expand Manufacturing

The Karnataka government is currently in discussions with Apple and its contract manufacturing partners to strengthen the state's manufacturing ecosystem. The plan involves expanding existing facilities and attracting more component suppliers, aiming to create a more comprehensive ecosystem capable of producing a wider range of products beyond iPhones.

Aiming to create a more robust ecosystem that can make products beyond iPhones, Karnataka Government is in discussion with Apple and its contract manufacturing partners to expand the existing facilities and bringing in more component suppliers.

This move is part of Karnataka's broader strategy to enhance its role in global electronics manufacturing, positioning the state as a key player in Apple's supply chain and diversifying its manufacturing capabilities.

Karnataka's IT Minister, Priyank Kharge, emphasized the state's commitment to attracting more Apple partners to deepen the local supply chain. With Foxconn and Wistron already present in Karnataka, the government aims to bring in additional Apple suppliers to enhance the manufacturing ecosystem.

Kharge explained that building a comprehensive supply chain is crucial for reducing the costs of final products, even if they are destined for export. By ensuring that the entire ecosystem is in place, the state can help lower production expenses and support the broader expansion of Apple's manufacturing capabilities in Karnataka. With this it’ll order  reduce cost of the final products, even when it's going to be shipped abroad, it is important to ensure that the entire ecosystem is in place.      

Apple's partner, Tata Electronics, has been manufacturing iPhones in Karnataka at the Wistron factory, which it acquired last year. The facility has been producing iPhones in the state since 2017. Meanwhile, Foxconn, Apple's largest manufacturing partner by volume, along with Pegatron, produces iPhones in Tamil Nadu.

Karnataka is now facilitating Foxconn's entry into the state with the development of its new facility, Project Elephant, marking a significant expansion of Apple's manufacturing operations in India. This move is expected to bolster the state's role in the global iPhone supply chain and further diversify Apple's production capabilities within the country.

In August, Foxconn Technology Group Chairman Young Liu visited Bengaluru and met with Chief Minister Siddaramaiah and IT Minister Priyank Kharge to discuss Foxconn's upcoming facility near Kempegowda International Airport. This facility, known as Project Elephant, will also assemble Apple's iPhones and is set to become Foxconn's largest smartphone manufacturing plant outside China.

Foxconn has acquired 300 acres of land in the ITIR Industrial Area, spanning Doddaballapura and Devanahalli Taluk in Bengaluru Rural District. The project is estimated to cost Rs 22,000 crore and is expected to create over 40,000 jobs, significantly boosting Karnataka's manufacturing ecosystem and reinforcing India's role in global electronics production.