Taiwanese tech giant Hon Hai Precision Industry Co., commonly known as Foxconn, has announced plans to invest $1.5 billion in India as part of its ongoing expansion strategy.
The move comes in response to a significant uptick in revenues within the South Asian market, reported by Reuters.
As per the report, the company's announcement, made via an exchange filing in Taiwan late on Monday, lacked specific details, simply noting that the investment is earmarked for "operational needs."
This decision aligns with a broader trend among Taiwanese electronics manufacturers, including Foxconn, to diversify their operations beyond China. The move is spurred by escalating tensions between Washington and Beijing, prompting companies to seek alternative markets.
Approximately half of Foxconn's revenue is currently derived from its collaboration with Apple, notably in iPhone manufacturing and other product ventures. The company has been actively involved in India for several years, extending its operations to include the production of the latest iPhone 15.
As a major Apple supplier with significant operations in mainland China, Foxconn faced challenges during the Covid-19 lockdowns in 2022, which severely impacted iPhone manufacturing. These disruptions, coupled with geopolitical uncertainties, have led Apple suppliers, including Foxconn, to reconsider their concentrated presence in China.
Foxconn has previously unveiled multiple projects in India, including a $600 million initiative in Karnataka state and a $500 million factory in Telangana state. These projects involve manufacturing mechanical enclosures for iPhones and a semiconductor equipment manufacturing facility operated in partnership with Applied Materials Inc.
In September, a Foxconn representative in India hinted on LinkedIn about the company's intentions to double its business size in the South Asian nation. Despite withdrawing from a $19.5 billion chipmaking joint venture with Vedanta earlier this year, Foxconn expressed confidence in India's ambitions.
With three manufacturing campuses already operational in India, Foxconn's latest multi-billion-dollar investment underscores its commitment to further establishing a robust presence in the growing South Asian market.
