NEW DELHI: Taiwan’s Hon Hai Precision Industry Co, which is a contract manufacturer for iPhones, on Monday said its subsidiary Foxconn Hon Hai Technology India Mega Development, has planned $1.6 billion investment in India. The planned outlay by the company is related to certain construction projects at its own land, according to an exchange filing on the London Stock Exchange.
The company has not disclosed additional details regarding where it will build the facility, but said the investment is for operational needs.
The announcement from Foxconn for additional investments comes at a time when the Indian government has been strongly focusing on bringing the global value chain for mobile phone and other hardware manufacturing in the country. The company has been making iPhones in the country for several years now including the latest iPhone 15, and is also a beneficiary of the smartphone production-linked incentive (PLI) scheme.
Foxconn currently has sizeable operations in Tamil Nadu, with its facility employing up to 40,000 people. Lately, Apple has also been vocal about shifting some of its iPhone production out of China to India and Vietnam following severe supply disruptions.
In September, Foxconn’s India representative V Lee had said that the company aims to double its workforce and investment in India by next year.
The Karnataka government in August also announced that Foxconn planned to invest $600 million on two component factories in the state. The investment included a plant for manufacturing iPhones and also a semiconductor equipment manufacturing plant.
“India has now reached a population of 1.4 billion people, translating to a large potential market for mid-to-high-end products which our clients are focusing on. Hence, it is necessary for us to continue to expand assembly and component operations in India,” Foxconn chairman Young Liu had said earlier.
“We see that more and more suppliers are investing in establishing plants in India and believe that this will become more prominent as time goes on,” Liu added.
Earlier this year, Foxconn acquired 300 acre land in Bengaluru rural district for Rs 300 crore. Separately, in May Telangana government also said Foxconn will invest $500 million (around Rs 4,115 crore) in setting up manufacturing plants in the state.
Foxconn already operates nine production facilities and thirty factories employing tens of thousands of people in India, where it takes in around $10 billion of revenue annually.
In a separate filing on Monday, Hon Hai said its another subsidiary Foxconn Singapore Pte has acquired 12.8 billion shares of Foxconn Hon Hai Technology India Mega Development shares for $1.54 billion.
Source: The Financial Express