Foxconn's $1.6 Billion Investment Signals Major Expansion in Indian Tech Manufacturing

In a significant move, Hon Hai Precision Industry Co, the renowned contract manufacturer for iPhones, revealed on Monday that its subsidiary, Foxconn Hon Hai Technology India Mega Development, is set to make a substantial $1.6 billion investment in India. This planned investment, as detailed in an exchange filing on the London Stock Exchange, is earmarked for specific construction projects on the company's existing land, with the company emphasizing its relevance to operational requirements.

Although details about the location of the facility remain undisclosed, Foxconn clarified that the investment is aligned with its operational needs. This announcement coincides with the Indian government's intensified efforts to establish a robust global value chain for mobile phone and hardware manufacturing in the country. Foxconn has been a key player in this arena, manufacturing iPhones in India, including the latest iPhone 15, and benefiting from the smartphone production-linked incentive (PLI) scheme.

Currently, Foxconn operates significant operations in Tamil Nadu, boasting a facility that employs up to 40,000 individuals. Apple, a collaborator with Foxconn, has expressed interest in diversifying its iPhone production, considering shifts to India and Vietnam due to supply disruptions experienced in China.

Foxconn's India representative, V Lee, stated in September that the company aims to double its workforce and investment in India by the following year. This commitment aligns with the Karnataka government's announcement in August about Foxconn's $600 million investment in two component factories in the state, covering the manufacturing of iPhones and semiconductor equipment.

Chairman Young Liu emphasized the significance of India's burgeoning population, reaching 1.4 billion people, and the potential market for mid-to-high-end products. He expressed the need for Foxconn to expand assembly and component operations in India, anticipating a growing trend of suppliers establishing plants in the country.

Earlier this year, Foxconn acquired 300 acres of land in Bengaluru rural district, reflecting its long-term commitment to India's technological landscape. The company, with nine production facilities and thirty factories in India, generating approximately $10 billion in annual revenue, continues to play a pivotal role in the country's thriving tech manufacturing sector.

In a parallel development, Hon Hai disclosed in a separate filing that another subsidiary, Foxconn Singapore Pte, has acquired 12.8 billion shares of Foxconn Hon Hai Technology India Mega Development for $1.54 billion, further underlining the company's strategic investments in its Indian operations.