iPhone maker Foxconn to invest $1.6 Billion in India
Hon Hai Precision Industry Co, a Taiwanese company renowned as an iPhone contract manufacturer, announced that its subsidiary, Foxconn Hon Hai Technology India Mega Development, has outlined a $1.6 billion investment strategy in India. As stated in an exchange filing on the London Stock Exchange, this investment is earmarked for specific construction projects on the company's owned land.
The company hasn't revealed specific details about the location for the facility but has emphasized that the investment is intended for operational necessities. This move from Foxconn to increase its investments aligns with the Indian government's push to establish the global value chain for mobile phone and hardware manufacturing within the country. Over the years, Foxconn has been manufacturing iPhones, including the latest iPhone 15, in India and has benefited from the smartphone production-linked incentive (PLI) scheme.
With a substantial presence in Tamil Nadu employing around 40,000 individuals, Foxconn has expanded its operations. Apple has also expressed interest in relocating a portion of its iPhone production from China to India and Vietnam due to significant supply disruptions. Foxconn's representative in India, V Lee, previously mentioned plans to double the company's workforce and investment in the country by the following year. Furthermore, the Karnataka government disclosed Foxconn's intentions to invest $600 million in two component factories, including one for iPhone manufacturing and another for semiconductor equipment, back in August.
Foxconn's chairman, Young Liu, highlighted India's vast population of 1.4 billion people, signaling a substantial potential market for mid-to-high-end products that their clients are targeting. Hence, the company deems it crucial to continue expanding assembly and component operations in India. Liu noted an increasing trend of suppliers establishing plants in India, foreseeing this trend gaining prominence over time.
Earlier this year, Foxconn procured 300 acres of land in Bengaluru rural district for Rs 300 crore. Additionally, the Telangana government announced in May that Foxconn intended to invest $500 million (around Rs 4,115 crore) to establish manufacturing plants in the state. Foxconn already operates nine production facilities and thirty factories in India, generating approximately $10 billion in revenue annually. In a separate filing, Hon Hai stated that its subsidiary, Foxconn Singapore Pte, acquired 12.8 billion shares of Foxconn Hon Hai Technology India Mega Development shares for $1.54 billion.