This investment follows Foxconn’s withdrawal from a $19.5 billion chipmaking joint venture in India.
Hon Hai Precision Industry Co., also known as Foxconn Technology, plans to invest over $1.5 billion in a construction project in India. The investment aims to support a construction project that will address the company’s operational needs. The iPhone producer revealed this in Taiwanese security filings on Monday.
The investment, amounting to $1.541 billion, is being channeled through Foxconn’s subsidiary, Hon Hai Technology India Mega Development, which has been operating in Maharashtra state since 2015, as per the filings and Indian corporate records.
Approximately 50% of Foxconn’s revenue is generated from its business with Apple Inc. For several years now, Foxconn has been manufacturing iPhones and other products in India, including the recent iPhone 15. In a LinkedIn post from September, a Foxconn representative in India announced the Taiwanese company’s intention to expand its business operations in the South Asian nation, aiming to double its current size.
Foxconn has extensive operations in mainland China and is an integral part of Apple’s iPhone manufacturing chain. The company experienced significant disruptions during the Covid-19 lockdowns in 2022, which slowed production significantly. Also, amid rising tensions between the U.S. and China, several Taiwanese electronics manufacturers are looking to expand their businesses outside China, reconsidering their concentrated operations in China.
Foxconn has already initiated several projects in India, including a $600 million project in Karnataka and a $500 million factory in Telangana. Foxconn is also planning to construct a $700 million facility near the airport in Bengaluru, Karnataka’s capital. Spanning over a 300-acre (121 hectares) site, this plant is expected to be used primarily for assembling iPhones.
Details of the latest investment were not elaborated in the filings. This investment follows Foxconn’s withdrawal from a $19.5 billion chipmaking joint venture in India, which the company stated was ended by ‘mutual agreement’. Despite this, Foxconn expressed continued confidence in India’s semiconductor industry aspirations.
