The technology giant Apple has announced plans to invest over $1.5 billion in an Indian construction project, aiming to reduce its dependency on China for the production of its products. This highlights the serious efforts of the company and its suppliers to strengthen their presence in India.

The most populous state in the world provides not only an increasingly important market for Apple but also immense growth opportunities. Therefore, the renowned analyst Erik Woodring from Morgan Stanley recently raised his price target for Apple from $190 to $220 to reflect the promising growth prospects in India.

The production of iPhones is increasingly being shifted towards India. Taiwanese Apple supplier Foxconn is at the forefront and has now taken another step in this direction. The company plans to make a significant investment of over $1.5 billion in an Indian construction project through its subsidiary Hon Hai Technology India Mega Development.

This is revealed from Taiwanese security documents and Indian company registration extracts. However, detailed information regarding the location and the project's main focus on production has not yet been announced.

According to the documents cited by "CNBC", the purpose of the project is to fulfill Apple's "operational demand". The subsidiary will also provide an equivalent amount in Indian Rupees for another construction project to meet operational requirements. Foxconn, a major Apple supplier with important facilities on the Chinese mainland, suffered severe setbacks in 2020 due to COVID-19 lockdowns in its factories.

The impacts on iPhone production, which is a vital part of Apple's manufacturing processes, were drastic. Geopolitical uncertainties in China have prompted Apple suppliers to reconsider their strong dependence on this country.

In response to that, Foxconn has announced various initiatives in India, including a $600 million project in the state of Karnataka and a $500 million factory in the state of Telangana, both located in southern India.

The new investment takes place several months after Foxconn "mutually agreed" to withdraw from a $19.5 billion joint venture for chip manufacturing in India. However, the company emphasized its continued "confidence" in the ambitions of the Indian semiconductor industry. This new Foxconn investment is thus part of a series of projects announced by the supplier in recent months.

Apple is not the only US corporation investing billions in building new production facilities in India. Leading laptop manufacturers such as Dell and HP are also participating in a subsidy program of the Indian government. The rapid increase in purchasing power in India and the relatively stable geopolitical situation make the country an attractive target for long-term investments by US companies.