Taiwanese technology giant Hon Hai Precision Industry Co., commonly known as Foxconn, is set to significantly expand its operations in India with a substantial investment of $1.6 billion, aimed at new construction projects. This investment marks a strategic move by Foxconn to diversify its manufacturing base beyond China, in light of escalating tensions between Washington and Beijing. About half of Foxconn’s revenue comes from its collaboration with Apple Inc., and the company has been actively manufacturing iPhones and other Apple products in India for several years, including the latest iPhone 15.
In September, a Foxconn representative in India indicated intentions to double the company’s business size in India. Earlier in August, the Karnataka state government announced Foxconn’s plans to invest $600 million in two component factories within the state. This investment includes a plant for manufacturing mechanical enclosures for iPhones and a semiconductor equipment manufacturing facility in partnership with Applied Materials Inc.
Additionally, Foxconn is progressing with a $700 million facility on a 300-acre site near the Bengaluru airport in Karnataka, which is expected to be involved in iPhone assembly. The recent investment announcement by Foxconn, however, does not clarify whether it covers these existing projects or if additional endeavors are in the pipeline.
Foxconn operates nine production campuses and over 30 factories in India, employing tens of thousands of individuals. The company generates approximately $10 billion in revenue annually from its operations in the country. This expansion is part of Foxconn’s growing plan in the South Asian market, following a surge in revenues.
The investment aligns with Foxconn’s strategy to support the Indian government’s ‘Make in India’ ambitions and establish diverse local partnerships. Despite pulling out of a $19.5 billion chipmaking joint venture with Vedanta earlier this year, Foxconn remains confident in India’s ambitions and is committed to investing in the country. The company operates three manufacturing campuses in India and plans to double its workforce and investment in India by next year.