The government has given the Taiwanese electronics behemoth Foxconn permission to invest more than $2.2 billion in the US and India.
Taiwan's Ministry of Economic Affairs granted this clearance. Approximately $1.49 billion of the total will be allocated to Foxconn's Singapore subsidiary.
The money will be invested in Yuzhan Technology (India) Private Ltd, another Foxconn subsidiary, by the Singapore subsidiary.
With the aid of this investment, a new facility in India will be able to manufacture iPhones and their parts.
According to experts, Foxconn is planning to move some of its production out of China as a result of trade concerns with the US.
India is emerging as a major location for the production of iPhones and related parts.
Additionally, Foxconn has been given permission to use $735 million to establish Project ETA (DE) LLC, a new business in the US.
This new company will concentrate on building servers and data center equipment.
Foxconn has been growing its footprint in nations like the US, India, Mexico, Vietnam, and parts of Europe as part of its global growth. The company currently operates 223 factories and offices in 24 countries, including 12 in Europe, 12 in India, and 54 in the Americas.
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The Taiwan-based business added that it used its Singaporean subsidiary to make the transaction.
By the end of next year, Apple plans to import the majority of its iPhones from India, angering US President Donald Trump, who claimed last week that he had urged Apple CEO Tim Cook to cease constructing plants in India.
Trump's remarks hasten a move away from China in order to reduce the risks associated with tariffs and geopolitical unrest.
Although it has committed to investing US$500 billion locally over the next four years and hiring more workers domestically, Apple produces none of its smartphones in the US and produces the majority of its iPhones in China.
To reduce geopolitical risks like the effects of additional tariffs, Hon Hai is also boosting its investments in the US.
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The Hon Hai facility in southern India assembles the majority of iPhones manufactured in India. Another important supplier is the electronics manufacturing division of the Tata Group, which acquired Wistron's local company and currently manages Pegatron's activities in India.
In the 12 months ending in March, Apple produced 22 billion US dollars' worth of iPhones in India, an almost 60% increase in manufacturing over the previous year.