- Foxconn will be investing an additional $1.6 billion in India.
- The company aims to double its workforce in the country in the next two years.
- Foxconn’s latest investment is expected to boost the iPhone production in India.
Foxconn is one of Apple’s largest manufacturing partners that makes iPhones and other products. The company also has several factories across India that produce the latest iPhone 15 and the iPhone 15 Plus in the country.
Foxconn has now announced a new investment of $1.6 billion in India, to expand its production capacity. As per reports, this investment is a part of Foxconn’s long-term plans in India to set up a semiconductor facility. This expansion is also expected to boost the iPhone production in India.
Foxconn’s Billion-Dollar Investment in India
Foxconn, also known as Hon Hai Precision Industries in Taiwan, said that the company is now looking to expand in India. Foxconn has officially registered an investment of $1.6 billion in India through a filing at a Taiwanese exchange. The company lists this investment as an operational need.
Foxconn has been under tremendous pressure from the United States to reduce its dependency on China. The company has been actively exploring markets outside of China to create a new production hub. Since 2017, the Taiwanese electronics giant has been manufacturing iPhones in India which has been a huge success for both Foxconn and Apple.
As of today, Foxconn has over 30 factories in India. However, almost half of its revenue comes from manufacturing iPhones for Apple. The new investment from the company in the Indian market will be used to expand its existing facilities and to set up additional plants.
Earlier this year, the Karnataka State Government announced that Foxconn is investing over $600 million in the state to set up two new component factories. The highlight of this investment is the plan to develop a semiconductor equipment manufacturing plant.
Foxconn Plans to Double Its Workforce in India
In September 2023, V Lee, the Foxconn Representative in India announced that the company is planning to double its workforce in India. Till date, the company has invested close to $10 billion in India, most of which is being utilized to produce iPhones.
Foxconn’s facility in Tamil Nadu is currently producing the latest iPhone 15 and the iPhone 15 Plus. The company’s major competitor, Wistron, recently took an exit from India after selling its business to the Tata Group.
Hence, Foxconn has a huge opportunity in India to capitalise on the rising needs of Apple’s production in India. While the Tata Group will also continue its expansion in the country, Foxconn’s experience in phone manufacturing gives it a slight upper hand to expand faster.
The new $1.6 billion investment will not just help Foxconn boost iPhone production, but it will also allow the company to open its doors to other smartphone brands. An increased production capacity will enable Foxconn to conduct contract manufacturing for Android mobile companies as well.
As of now, Foxconn has not specified the exact utilization of its latest investment. The company has only cited it as funding for its expansion plan in India. It is possible that Foxconn may set up completely new facilities in India, in addition to its expansion plans in Karnataka and Tamil Nadu.