Foxconn continues on its rapid expansion spree in India as the geopolitical issues disturb its operations in China!
Foxconn announced on Tuesday that its Indian subsidiary plans to invest ₹1,200 crore in constructing a factory on its owned land, as per an exchange filing. This investment aims to cater to its ‘operational needs’.
Foxconn bought 300 acres of land in Devanahalli, Bengaluru in May, 2023, which could be the location of the factory. The company earlier announced more than $1.5 billion investment in an Indian construction project to meet the ‘operational needs’ of its role as an Apple supplier. This significant investment was channeled through Hon Hai Technology India Mega Development, a subsidiary of Foxconn.
The Taiwanese contract manufacturing giant is on a rapid expansion spree in India. Just last month, Foxconn revealed a $37.2 million investment in collaboration with the HCL Group to set up a chip packaging and testing facility in the country. This development followed the dissolution of its joint venture with Vedanta. As part of this new venture, Foxconn Hon Hai Technology India Mega Development will acquire a 40 percent stake in the joint venture.
As the largest global assembler of iPhones and other electronic devices, Foxconn’s expansion in India comes at a time when geopolitical tensions and economic uncertainties are affecting its primary operations in China. In the Indian market, Foxconn leads in iPhone manufacturing, accounting for 68 percent of total production, with Pegatron and Wistron (Tata) following at 18 percent and 14 percent, respectively.
In recognition of its contributions, the Indian government awarded Young Liu, Foxconn’s chairman, the Padma Bhushan on January 25.