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 major electronics contract manufacturer and makes components for smartphones like displays, SoCs and various modules for major 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, much of its existing operations revolve around manufacturing final, finished products for major tech companies. Hon Hai Precision Industry Co. on the other hand, has been a major components manufacturer.
One of Foxconn’s major manufacturing ventures in India would have been the semicon manufacturing unit that it would have set up in partnership with Vedanta. However, because both Vedanta and Foxconn had no previous experience in making semicons, the venture had to be abandoned.
Taiwan-based Foxconn is the world’s largest contract manufacturer of electronics and has rapidly expanded its presence in India by investing in manufacturing and assembling facilities in the south of the country 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, has put up a post on LinkedIn saying that they are planning to double their investment and workforce in India within the next twelve months.