Foxconn Technology Group, a major assembler of iPhones, has spent $33 million (₹270.95 crore) on buying equipment from Apple’s Indian unit over the past year, taking a significant step towards expansion in India.

What Happened? Taiwan-based Hon Hai Precision Industry Co, which trades as Foxconn internationally, said the Indian unit made these acquisitions to support its operations in the country, Bloomberg reported.

This move provides insight into the electronics manufacturer’s relationship with Apple, its largest customer. Typically, Apple contributes to the financing of equipment Foxconn uses to manufacture a significant portion of the world’s iPhones.

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Why It Matters: Rajeev Chandrasekhar, India’s Minister of State for Technology, stated in May that Apple is considering boosting electronics production in India. This followed a meeting between Tim Cook, Apple’s CEO, and Prime Minister Narendra Modi, during which Cook reiterated his commitment to investing in the region.

Apple has already tripled iPhone production in India, assembling over $7 billion (₹57,476 crore) worth of iPhones in the last fiscal year, which accounts for nearly 7% of its global output.

Foxconn is also planning further investments in the country. As reported by Bloomberg, the company intends to spend about $700 million (₹5,747 crore) to construct a new plant in Karnataka, southern India, partially to increase local production of iPhone parts.

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