Foxconn's $2.2 Billion Investment Boosts India's Role in Global Manufacturing Shift

By siliconindia  |  Thursday, 26 June 2025, 12:03:44 PM IST

Foxconn's $2.2 Billion Investment Boosts India's Role in Global Manufacturing Shift
  • Foxconn secured approval for a $2.2 billion investment, including $1.48 billion for expanding its manufacturing in India, particularly in smartphone display modules.
  • India attracted over $500 billion in FDI from 2014–2024, driven by policies like ‘Make in India’ and the PLI scheme, with $300 billion flowing in during the last five years alone.
  • Manufacturing FDI rose 18% in FY 2024–25, and India is now assembling iPhones and exporting $21 billion worth of smartphones, showcasing its emergence as a global electronics hub.
India’s ascent on the global manufacturing map gained fresh momentum as Taiwanese electronics giant Hon Hai Precision Industry Co Ltd, popularly known as Foxconn, secured regulatory approval for investments totaling $2.2 billion across India and the US. This strategic move underscores the global trend of diversifying supply chains away from China, with India emerging as a key alternative hub.
The investment plan was approved by Taiwan’s Department of Investment Review under the Ministry of Economic Affairs (MOEA), marking a significant development in Foxconn’s global expansion. As part of this plan, the department cleared a $1.49-billion proposal to increase capital in Foxconn Singapore Pte Ltd, a subsidiary that will subsequently channel these funds into its Indian arm, Yuzhan Technology (India) Pvt Ltd.
Foxconn, a major supplier for Apple, has already invested $1.48 billion (approx. Rs 12,800 crore) in its Indian operations. The company is currently setting up a state-of-the-art facility in Sriperumbudur, Tamil Nadu, aimed at assembling smartphone display modules a key component in the iPhone production line.
Industry experts believe that such investments reflect the growing global confidence in India’s manufacturing potential, largely driven by favourable policy reforms. According to Focus Taiwan, these developments align with India’s broader strategy under the 'Make in India' and Production Linked Incentive (PLI) schemes, which have significantly enhanced the country’s appeal as a manufacturing destination.
Foreign Direct Investment (FDI) inflows into India have surged dramatically, with the country attracting over $500 billion between 2014 and 2024 more than double the $208 billion recorded in the previous decade. Remarkably, $300 billion of this came in just the last five years, reflecting an accelerated growth trajectory.
Sanjay Nayar, President of Assocham, attributes this surge to transformative initiatives like Make in India, Digital India, and the PLI scheme. He highlighted that these reforms have not only improved the ease of doing business but also positioned India as a key player in clean technology and sustainable growth.
Notably, manufacturing FDI rose by 18% in FY 2024–25, reaching $19.04 billion. Singapore emerged as the top source, contributing 30%, followed by Mauritius (17%) and the US (11%).
With iPhone assembly and smartphone exports now crossing $21 billion, India is fast evolving into a global electronics manufacturing powerhouse.

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