In a significant move signaling a shift in global supply chains, Foxconn, the world's premier contract manufacturer of electronics, is setting its sights on India. The Taiwan-based tech behemoth is not just making a cursory glance towards the subcontinent but is planning to double its workforce and investments within the next year.
This revelation came from V Lee, Foxconn's representative in India. In a recent LinkedIn post wishing Indian Prime Minister Narendra Modi on his birthday, Lee highlighted the company's growth trajectory in India under Modi's leadership. He optimistically stated, "We will work even harder to present you with a greater birthday gift next year, aiming for another doubling of employment, FDI (foreign direct investment), and business size in India."
Foxconn's strategic pivot to India is evident in its recent endeavors. The company, which is a key supplier for Apple, already boasts an iPhone manufacturing facility in Tamil Nadu, a southern state in India. This facility employs around 40,000 individuals. Furthermore, Foxconn has inked a Letter of Intent with Karnataka, a neighboring state, which will usher in two groundbreaking projects. These projects, combined with the ongoing iPhone manufacturing initiative, represent an investment exceeding $600 million.
The expansion doesn't stop there. Reports suggest that Foxconn is set to invest an additional $500 million to establish manufacturing hubs in Telangana, another southern state. This move is anticipated to create over 25,000 jobs. Simultaneously, discussions are underway with the western state of Gujarat for the establishment of a semiconductor plant.
However, it hasn't been an entirely smooth sail for Foxconn in India. The company recently withdrew from a $19.5 billion semiconductor joint venture with Vedanta, an Indian conglomerate. Citing challenges and external issues unrelated to the project, the collaboration came to a halt.
Yet, the broader picture for Foxconn in India remains promising. The company's Tamil Nadu facility has reportedly commenced the production of Apple's latest offering, the iPhone 15. This is a significant step as India aims to parallel China in manufacturing Apple's cutting-edge devices.
Foxconn, responsible for assembling approximately 70% of Apple's iPhones, began diversifying its production base away from China after the country's stringent COVID-19 measures hampered operations at its primary iPhone facility in Zhengzhou. This strategic shift is further accentuated by the escalating geopolitical tensions between the U.S. and China. Recent reports indicate that Beijing has prohibited the use of iPhones and other foreign-brand mobile devices within central government agencies.
In conclusion, as global supply chains undergo transformation, companies like Foxconn are reevaluating their strategies. With its increasing investments and workforce in India, Foxconn is not only tapping into the country's vast potential but also navigating the intricate geopolitical landscape of the 21st century.
