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Tech Giant Foxconn to Invest $1.6 Billion in India Expansion Bid
Taiwanese tech giant Foxconn, renowned for manufacturing iPhones, announces a colossal investment of ₹13,300 crores ($1.6 billion) for expansive growth initiatives in India. This strategic move, disclosed through an official filing, underscores Foxconn’s commitment to fortifying its operational footprint in the country amid global economic shifts.
Operational Expansion: Foxconn’s Ambitious Investment for Growth
The recent announcement emphasized Foxconn’s commitment to further expansion in India, earmarking the substantial investment for “operational needs.” While specific details about the new facilities and their locations remain undisclosed, the move aligns with Foxconn’s broader strategy to diversify its operations beyond China amid escalating tensions between the United States and China.
Apple Partnership and Indian Manufacturing: Foxconn’s Key Milestones
Approximately 50% of Foxconn’s revenue is derived from its collaboration with tech giant Apple Inc. The company has been actively manufacturing iPhones and other Apple products in India for several years, including the recently released iPhone 15. In September, a representative from Foxconn in India revealed plans to double the company’s business scale in the South Asian nation.
Foxconn’s Previous Commitments in India: A Recap
Earlier in August, the Karnataka state government in India disclosed Foxconn’s intentions to invest $600 million in two component factories within the southern state. These projects include a plant dedicated to producing mechanical enclosures for iPhones and a semiconductor equipment manufacturing facility in collaboration with Applied Materials Inc. The latter was part of a government announcement detailing Foxconn’s broader expansion plans in India.
Moreover, Foxconn’s ambitious vision extends to a $700 million facility slated for construction on a 300-acre site near Bengaluru’s airport in Karnataka. This facility is expected to focus on iPhone assembly, bolstering Foxconn’s integral role in Apple’s supply chain.
Expansion Scope: Existing Foxconn Presence in India
Foxconn currently operates nine production campuses and over 30 factories across India, contributing significantly to the nation’s economy. With an annual revenue of around $10 billion generated in India, the tech giant employs tens of thousands of people in various capacities, solidifying its status as a key player in the country’s manufacturing landscape.
