Foxconn and Apple will invest $1.5 billion in India.
As part of its ongoing development strategy, Foxconn intends to invest $1.54 billion in India as a result of a spike in sales in the South Asian region.
According to a stock exchange statement from Foxconn, the investment will enable it to meet its “operational needs.” The Taiwanese company announced two months ago that it intends to quadruple its employment and investment in India by the following year.
As several tech titans try to relocate a portion of their manufacturing base to India in a move that experts refer to as “China+1,” Foxconn collaborates with numerous companies, including Apple, and assembles their gadgets in plants in India.
The largest EMS provider in the world, Foxconn, increased its investment in China over a 15-year period, from 2001 to 2017, however since 2018, the company’s growth has slowed due to trade tensions between the US and China.
The business, which has three production facilities in India, withdrew from a $19.5 billion chip manufacturing joint venture with Vedanta earlier this year, but it maintains its “confidence” in India’s aspirations.
It’s difficult to start from scratch when building fabs in a foreign country, but Foxconn is determined to make investments in India. Since the 1980s, we have been working on problems similar to this. Foxconn, also known as Hon Hai, stated at the time that it had no intention of doing anything other than continuing to steadfastly support the government’s “Make in India” goals and create a variety of local partnerships that satisfy the interests of stakeholders.
The company declared in August that it would invest $600 million in two projects for the production of semiconductor equipment and iPhone case components in the state of Karnataka, in southern India.
According to a recent report by Goldman Sachs analysts, for 3Q23 (the most recent quarter whose results were released earlier this month), we see revenues from India continuing to rise, at NT$62bn, or +53% YoY from a low base, leading India revenue contribution to increase to 3.3% in 9M23 vs. ~2% in 2021-22A.
“We view Hon Hai’s global footprints as better securing its leading market position in EMS,” the statement reads. “The rising contribution reflects global-tier clients’ needs on a diversified production base.”
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