Foxconn confirmed plans to add manufacturing capacity in India with a TWD50 billion ($1.6 billion) investment, following months of speculation about the size and location of its expanded operations.

In a stock market filing, the contract manufacturer and key Apple supplier stated the purpose of the investment was operational needs and did not disclose the site of the new facilities. The investment will be made through its subsidiary Hon Hai Technology India Mega Development.

With rising trade tension between the US and China, Apple for more than a year has been pushing its suppliers to diversity their operations by moving facilities out of China, where the company has assembled the vast majority of its devices for decades.

Foxconn’s representative in India previously unveiled aims to double employment, foreign direct investment and its business size in India, without giving any specifics.

Various news outlets reported in August the Apple supplier planned to invest an additional $500 million in two component factories in the state of Karnatakam, following plans disclosed in June to build a $700 million iPhone assembly plant in Bengaluru, the state capital of Karnataka.

Apple started manufacturing iPhones through Foxconn in the country in 2017 and has been increasing local production as its shifts assembly to other markets and reduces its reliance on China.

In mid-August, Foxconn began assembly of iPhone 15 models at a factory in southern India, soon after its facilities in China began shipments.

India’s government awarded INR450 billion ($5.4 billion) in incentives in 2020 to domestic and international electronics companies, including Foxconn.