Foxconn's Hon Hai announced $1.6 billion investment in new factory in India
By siliconindia | Tuesday, 28 November 2023, 10:06:37 AM IST
Hon Hai Precision Industry Co., the company that manufactures iPhones, has announced plans to invest another NT$50 billion ($1.6 billion) in construction projects in India. The announcement was made in an exchange filing in Taiwan. The company did not provide any further details about the investment except that it was for "operational needs". When asked about the new facilities, a spokesperson for the company declined to comment on their location.
Taiwanese electronics manufacturers, including Hon Hai (also known as Foxconn), are diversifying their businesses outside of China due to rising tensions between Washington and Beijing. Foxconn generates about half of its revenue from business with Apple Inc. The company has been manufacturing iPhones and other products in India for several years, including the latest iPhone 15. In September, a Foxconn representative in India announced on LinkedIn that the company plans to double the size of its business in the South Asian country.
In August, India's Karnataka state government announced that Foxconn planned to invest $600 million in two-component factories in the southern Indian state. That included a plant that will make mechanical enclosures for iPhones and a semiconductor equipment manufacturing plant it will operate with Applied Materials Inc, the government said at the time.
Those two projects are on top of a $700 million facility Foxconn aims to build on a 300-acre (121 hectares) site close to the airport in Bengaluru, the capital of Karnataka. That plant is likely to assemble iPhones. It was not immediately clear if the latest investment announcement was to cover those projects or additional ones. Foxconn already operates nine production campuses and more than 30 factories employing tens of thousands of people in India, where it takes in around $10 billion of revenue annually.
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