In a major boost for India’s manufacturing goals, and Prime Minister Narendra Modi’s Make In India movement, Foxconn is set to invest over $1.57 billion in India.
The investment will reportedly be made by Hon Hai Precision Industry Co., one of Foxconn’s biggest divisions, which is a significant electronics contract manufacturer and produces components for smartphones like displays, SoCs, and various modules for essential smartphones. Foxconn said its unit Foxconn Singapore obtained 12.83 billion shares of Foxconn Hon Hai Technology India Mega Development for $1.54 billion.
This significant investment aligns with the company’s strategic efforts to expand its manufacturing capabilities in the country.
Currently, Foxconn does not manufacture components in India. Instead, its operations revolve around manufacturing final, finished products for major tech companies. On the other hand, Hon Hai Precision Industry Co. has been a significant components manufacturer.
One of Foxconn’s major manufacturing ventures in India would have been the Semicon manufacturing unit it would have set up in partnership with Vedanta. However, the venture had to be abandoned because neither Vedanta nor Foxconn had previous experience in making semicons.
Taiwan-based Foxconn is the world’s largest contract manufacturer of electronics. It has rapidly expanded its presence in India by investing in manufacturing and assembling facilities in the country’s south as the company seeks to move away from China in its China Plus One Policy.
In September this year, V Lee, Foxconn’s representative in India, posted on LinkedIn that they are planning to double their investment and workforce in India within the next twelve months.
