Foxconn, the iPhone maker, is set to augment its presence in India with a substantial $1.6 billion investment, as revealed in an exchange filing in Taiwan. The company’s move aims to bolster operational capabilities, although specific details about the new construction projects remain undisclosed.
This expansion initiative comes against a backdrop of escalating tensions between the U.S. and China, prompting Taiwanese electronics firms like Hon Hai Precision Industry Co. (Foxconn) to diversify their operations beyond China’s borders.
A significant portion of Foxconn’s revenue, approximately half, stems from its partnership with Apple Inc. Over the years, the company has been manufacturing iPhones and other products in India, including the latest iPhone 15 model. With intentions to double its business scale in India, Foxconn aims to broaden its footprint in the South Asian nation.
Earlier announcements by the Karnataka government highlighted Foxconn’s planned investments, including $600 million for two component factories in the state. These initiatives involve the production of mechanical enclosures for iPhones and a semiconductor equipment manufacturing plant in collaboration with Applied Materials Inc.
Additionally, Foxconn has ongoing plans for a $700 million facility near Bengaluru’s airport, possibly designated for iPhone assembly. However, it remains unclear if the recent $1.6 billion investment encompasses these ongoing projects or represents additional endeavors.
With an extensive existing infrastructure comprising nine production campuses and more than 30 factories across India, Foxconn’s annual revenue from the country stands at an estimated $10 billion.
Sources By Agencies