April 14, 2024
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Foxconn Plans $1.6 Billion Investment for Expansion in India Amidst Global Diversification Efforts

Taiwanese electronics giant Hon Hai Precision Industry Co., commonly known as Foxconn, has unveiled plans for a significant expansion in India with a whopping investment of NT$50 billion ($1.6 billion). The announcement, made via an exchange filing in Taiwan, lacked specific details, citing the investment as crucial for “operational needs.” Despite the lack of clarity on the location or nature of the new facilities, this move underscores Foxconn’s commitment to further establishing its presence in India’s burgeoning market.

This development arrives amidst escalating tensions between major global powers, compelling Taiwanese tech manufacturers like Foxconn to seek diversification beyond China. With approximately half of its revenue generated from its collaboration with Apple Inc., Foxconn has been actively manufacturing iPhones and other Apple products in India for several years. In a bid to scale up its operations in the South Asian nation, the company had previously revealed intentions to double its business size, signaling a firm commitment to expanding its foothold in India.

Earlier investments by Foxconn in India included plans to inject $600 million into establishing two component factories in the state of Karnataka. These factories encompass a plant dedicated to producing mechanical enclosures for iPhones and a semiconductor equipment manufacturing unit in collaboration with Applied Materials Inc. Additionally, reports from Bloomberg News highlighted a proposed $700 million facility intended to be erected on a sprawling 300-acre site near Bengaluru’s airport. Speculations suggest that this upcoming plant might primarily focus on iPhone assembly.

The recent announcement of a $1.6 billion investment by Foxconn raises questions about whether it will cover these ongoing projects or unveil new endeavors in India. Foxconn, already operating nine production campuses and over 30 factories in India, generating roughly $10 billion in annual revenue, appears poised to reinforce its presence in the country’s burgeoning tech landscape.

This substantial investment by Foxconn signifies a strategic move to further tap into India’s growing market potential, reflecting the company’s concerted efforts to diversify its global manufacturing footprint beyond its traditional stronghold in China.

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