Foxconn Chairman Young Liu Predicts India's Rise as the Global Manufacturing Hub

07 Sep, 2023

Foxconn Chairman Young Liu Predicts India's Rise as the Global Manufacturing Hub

Foxconn, also recognized as Hon Hai, ventured into the Indian market in 2005, marking the onset of its manufacturing operations within the country. The company displays a positive outlook on India's potential to evolve into a global manufacturing hub. Young Liu, Chairman of Hon Hai Technologies, articulated, "If the course of events remains unchanged, India is poised to emerge as a prominent manufacturing center on the global stage." He further emphasized that Taiwan would serve as India's most dependable and trustworthy partner in this journey.

Liu acknowledged the intricate supply chain ecosystem, which took more than three decades to establish in China, emphasizing that its transfer to India would require time. However, he highlighted Foxconn's advantage, having prior experience in this domain, which is expected to expedite the transition. This presents substantial opportunities for the growth of the local electronics industry.

In response to evolving customer demands, Foxconn is actively broadening its presence in India. Although the company's current activities primarily revolve around the final assembly of Information and Communication Technology (ICT) products in the country, it is gearing up to take a proactive stance in developing essential components to enhance its competitiveness in India. Chairman Liu divulged that the initial focus for these key components in India would center on consumer electronics. Nevertheless, plans are underway to introduce key components for electric vehicles (EVs) in the coming year. While key component shipments might be deferred to the following year, significant construction work is already underway this year. These endeavors will be concentrated in Karnataka, Tamil Nadu, and Telangana.

During a recent quarterly earnings call, Liu revealed some impressive statistics regarding Foxconn's operations in India. Presently, the company operates approximately nine campuses in the country, encompassing an area equivalent to more than 500 football fields. With over 30 factories operating in India, Foxconn generates an annual business turnover of roughly $10 billion. The company also provides housing and safety to thousands of employees with over 20 dormitories dedicated to their well-being in India. India now accounts for $10 billion of Foxconn's annual revenue. Given the immense market potential in India, and with Foxconn's commitment to implementing its strategies fully, the investment of several billion dollars in India is only the beginning of a promising journey.