Taiwan's Foxconn, the world's largest contract manufacturer of electronics, has announced an investment of $1.5 billion in India. The company, known for being a major supplier for Apple, detailed its investment plans in a recent stock exchange filing.
Foxconn, already increasing its presence in southern India, aims to double both its workforce and investment in the country by the next year. The move is a part of the company's strategy to diversify its manufacturing bases beyond China, where its factories play a critical role in Apple's iPhone manufacturing chain.
The $1.541 billion investment, channeled through Foxconn's subsidiary Hon Hai Technology India Mega Development, will be allocated to a construction project in India's Maharashtra state. This project, according to the Taiwanese security filings, is designed to meet the company's "operational needs."
This investment decision comes after Covid-19 lockdowns in China severely impacted Foxconn's manufacturing operations, prompting a reassessment of its concentrated presence in the region. The geopolitical climate and supply chain disruptions have further influenced the company's decision to diversify its manufacturing bases.
Foxconn's Chairman Liu Young-way previously highlighted the potential he sees in India, suggesting that "several billion dollars in investment is only a beginning." This reflects the company's long-term commitment to expanding its operations in India, which includes previous projects like a $600 million investment in Karnataka state and a $500 million factory in Telangana state.
Despite the recent pullout from a $19.5 billion chipmaking joint venture in India, Foxconn maintains its confidence in the country's semiconductor industry. The latest investment is seen as a strategic move to bolster its production capabilities and reduce reliance on its Chinese operations.
No additional details were provided in the securities filings, and Foxconn did not immediately respond to requests for comment on the specifics of the investment. However, this development marks a significant step in the company's global expansion strategy, particularly in diversifying its manufacturing and operational bases across different geographies.
Foxconn's decision to invest heavily in India aligns with the broader trend of tech giants seeking to mitigate risks by diversifying their production locations, especially in the wake of recent global supply chain challenges. This move is expected to significantly boost India's manufacturing sector and create new job opportunities, further strengthening the country's position as a key player in the global electronics manufacturing landscape.