Apple Inc partner Foxconn Technology Group plans to invest $700 million in India’s new plant to upgrade local production, underscoring a hastening shift of manufacturing left from China as Washington-Beijing tensions rise.

The Taiwanese company, known for its flagship element Hon Hai Precision Industry, plans to shape the plant on a 300-acre site close to the airport in Bengaluru, Karnataka. The factory may also accumulate Apple’s receivers, and Foxconn uses the site to produce nascent electric vehicle business.

The investment is one of Foxconn’s principal single expenditures in India and underlines how China risks losing its position as the world’s largest electronics producer. Apple and other US brands are inclined to their Chinese-based dealers to travel to alternative sites such as India and Vietnam. It’s reconsidering the global supply chain enhanced during the pandemic, and the Ukraine war could reform how global electronics are ended. The new production in India is predictable to create about 100,000 jobs.

Zhengzhou plant output in china plunged ahead of the year-end holidays amid Covid-related troubles, urging Apple to re-examine its China-reliant source chain. Foxconn’s choice is the newest move that suggests suppliers may move size out of China faster than probable.

The plans might change as Foxconn is in the process of confirming investment and project minutiae. It’s unclear if the plant signifies new capacity or production that Foxconn is unstable from other sites, such as its Chinese services.

Foxconn’s decision would be a coup for Modi’s government, witnessing an opportunity to close India’s tech gap with China as Western investors and companies sour on Beijing’s restrictions on the private sector.

India has offered financial incentives to Apple suppliers such as Foxconn, which started producing the latest generation of iPhones at a factory in Tamil Nadu state last year. Smaller rivals Wistron and Pegatron are also expanding operations in India, while suppliers such as Jabil Corp have started producing AirPods components locally.