Taiwanese technology giant Foxconn, a key supplier to Apple, plans an additional investment of $1.54 billion in India for its “operational needs”, part of its strategy to diversify its production outside China.
The company – also known by its official name Hon Hai Precision Industry – is the world’s largest contract electronics manufacturer and assembles devices for many companies, including Apple’s iPhones. Foxconn said in a statement to the Taiwan Stock Exchange on Monday that its Indian subsidiary plans to spend around 128 billion rupees ($1.54 billion) to contract other companies “to build on owned land” to get faced with “operational needs”. The text does not give any details, only stating that “an additional announcement will be made following confirmation of the transaction.” Foxconn is the largest private employer in China, with more than a million employees, but is looking to diversify its manufacturing chain after seeing its production affected by strict anti-Covid restrictions in China and diplomatic tensions with the United States .
In May, the company purchased a huge plot of land on the outskirts of Bangalore, India’s high-tech hub, and has since announced plans to expand its operations in the country. Foxconn Chairman Young Liu then said he saw the potential to invest “several billions of dollars” in India. According to him, Foxconn has nine manufacturing campuses and more than 30 factories in India. The company plans to expand its India business into “critical components” for consumer electronics and electric vehicles, to strengthen its competitiveness, he said.