Foxconn's Hon Hai Plans $1.6 Billion Investment to Expand Presence in India

28 Nov, 2023

Foxconn's Hon Hai Plans $1.6 Billion Investment to Expand Presence in India

Hon Hai Precision Industry Co., popularly known as Foxconn, has disclosed its intention to extend its involvement in India with a hefty NT$50 billion ($1.6 billion) investment aimed at construction projects. The announcement, detailed in a filing on the Taiwanese stock exchange late Monday, remains cryptic on specifics, merely citing the investment as vital for "operational needs." When probed for further details, a company spokesperson opted not to disclose the location or nature of these forthcoming facilities.

This decision aligns with the broader trend among Taiwanese electronics firms, including Foxconn, seeking to diversify their operations beyond China amid escalating tensions between Washington and Beijing.

Approximately half of Foxconn's revenue is derived from its collaboration with Apple Inc. Over recent years, the company has been manufacturing iPhones and other Apple products in India, extending to the production of the latest iPhone 15. An assertion made by a Foxconn representative in India via LinkedIn in September hinted at the company's intent to double its business presence in the South Asian nation.

Earlier in August, the Karnataka state government unveiled Foxconn's plan to invest $600 million in two component factories within the southern Indian state. These comprised a facility dedicated to manufacturing mechanical enclosures for iPhones and a semiconductor equipment plant in partnership with Applied Materials Inc., as communicated by the government at the time.

In addition to these initiatives, Foxconn had previously announced a $700 million project earmarked for a 300-acre site in Bengaluru, Karnataka's capital, near the airport. Reports from Bloomberg News indicated that this plant was poised to assemble iPhones.

Whether the recent investment declaration encompasses these ongoing projects or introduces new endeavors remains ambiguous. Foxconn currently operates nine production campuses and more than 30 factories, providing employment to tens of thousands in India, generating an annual revenue of approximately $10 billion.

This fresh investment signifies Foxconn's continued commitment to India while strategically navigating the evolving landscape of global manufacturing and market demands.