Foxconn Singapore Acquires 1.2 Billion Shares in Indian Subsidiary to Fuel Expansion
Foxconn Singapore, a subsidiary of the Taiwanese electronics giant Foxconn, has announced the acquisition of 1.203 billion ordinary shares of its Indian unit, Foxconn Hon Hai Technology India Mega Development. The transaction, valued at approximately $144 million, is part of a broader strategy to enhance the capital of its Indian operations. This move follows a significant meeting between Foxconn Chairman Young Liu and Indian Prime Minister Narendra Modi in New Delhi, highlighting Foxconn's commitment to expanding its presence in India.
The share acquisition is seen as a strategic investment to bolster the financial foundation of Foxconn’s Indian subsidiary. Alongside this investment in India, Foxconn has also increased its stakes in subsidiaries across the United States, Mexico, and Europe, marking a day of substantial global investment for the company.
Young Liu, who was awarded the Padma Bhushan earlier this year, revealed Foxconn’s ambition to diversify its product offerings beyond smartphones. The company plans to focus on several high-growth sectors, including information and communication technology (ICT), electric vehicles (EVs), energy solutions, and digital health. Liu emphasized Foxconn's goal of advancing up the value chain in India, particularly within the ICT sector.
During the inauguration of Foxconn's extensive industrial housing project in Sriperumbudur, Liu discussed the company's broader strategic vision. "Foxconn is renowned for its vertical integration capabilities, and we aim to elevate our position in the ICT sector in India," he stated. He also outlined plans to explore opportunities in the EV sector, particularly in battery technology, and in the digital health industry with products like wearables and home medical devices.
In addition to its focus on ICT and EVs, Foxconn is considering the establishment of townships in Tamil Nadu, similar to models implemented in Taiwan and China. Liu explained that these townships would enhance operational efficiency and benefit both employees and customers, reinforcing Foxconn’s commitment to India’s growth trajectory.
Foxconn’s international expansion on the same day includes significant investments in other regions. In the United States, Foxconn has invested $253 million in Foxconn Assembly LLC through its subsidiary Cloud Network Technology USA Inc. The company’s investment in Mexico totaled $241 million, with Cloud Network Technology Singapore Pte. Ltd. acquiring equity in FII AMC MEXICO S. DE RL DE CV. In Europe, Foxconn Interconnect Technology, another subsidiary, acquired 197 million common shares of Foxconn Interconnect Technology Singapore for approximately 180 million euros.
This series of investments underscores Foxconn’s strategic push to solidify its global footprint and capitalize on emerging opportunities across key markets. Liu reiterated Foxconn’s dedication to being a significant player in India's growth, positioning Taiwan as a reliable partner in the process. The company’s diversified investment approach reflects its commitment to driving innovation and operational excellence across multiple industries and regions.
