Foxconn will start producing chips in India thanks to the partnership signed with the oil group Vedanta. Apple could be one of the companies that will benefit the most from this partnership.
As Reuters reported, Foxconn is looking to diversify its business due to the global chip shortage. Although the situation is slowly improving, the lack of semiconductors will haunt big tech companies and beyond for some time. Foxconn will invest $118.7 million to create a joint venture with Vedanta, which will become the majority shareholder of the new company. Foxconn, on the other hand, will own 40% of the shares.
The news comes shortly after Foxconn said the component shortage would ease with major upgrades planned for the current quarter.
While every company has suffered from the global chip shortage, Apple has been one of the few to have handled this crisis the best. For example, the Cupertino company still managed a record-breaking quarter of the holiday season, even though the parts shortage cost an estimated $6 billion in lost sales in each of the past two quarters.
Looking to 2022, however, Apple is expected to see year-over-year revenue growth in the January-March quarter. Despite this, the company remains cautious about estimates that the sector’s supply issues may be resolved soon.