Foxconn’s Growing Presence in India
In a significant move, Taiwan-based Foxconn has announced plans to invest $1.54 billion in India, further solidifying its growing presence in the South Asian market. This investment comes two months after the company stated its intention to double its workforce and investment in India by next year.
Investment for Operational Needs
According to a stock exchange filing by Foxconn, the investment will help fulfill the company’s "operational needs." This development is seen as a testament to Foxconn’s confidence in India’s growth potential and its commitment to supporting the government’s ambitious ‘Make in India’ initiative.
Double Down on Investment and Workforce
In July of this year, Foxconn announced plans to double its workforce and investment in India by next year. The company, which operates three manufacturing campuses in India, is poised for significant expansion in the region. This move comes as tech giants continue to shift part of their manufacturing base to India, a trend described by analysts as ‘China+1.’
Foxconn’s Global Presence
As the largest EMS (Electronic Manufacturing Services) provider globally, Foxconn has been actively expanding its operations worldwide. However, investment into China has slowed down since 2018 due to U.S.-China trade tensions.
Continued Support for ‘Make in India’
Foxconn remains committed to supporting the Indian government’s ‘Make in India’ ambitions and establishing a diverse range of local partnerships that meet the needs of stakeholders. The company’s confidence in India’s growth potential is evident, with Foxconn pulling out of a $19.5 billion chipmaking joint venture with Vedanta earlier this year.
Investment Breakdown
In August, Foxconn announced plans to invest $600 million in two projects in the Southern Indian state of Karnataka for:
- Chip-equipment manufacturing: This investment aims to establish India as a significant player in the global chip equipment market.
- Casing components for iPhones: Foxconn’s commitment to investing in India highlights its dedication to supporting local partnerships and meeting client needs.
Rising Revenue Contribution
According to Goldman Sachs analysts, revenues from India have seen a 53% year-over-year increase, with India contributing 3.3% of the company’s revenue in the first nine months of this year compared to approximately 2% in 2021-22.
Securing Market Position
The rising contribution reflects global-tier clients’ needs for diversified production bases and highlights Foxconn’s efforts to secure its leading market position as an EMS provider.
Conclusion
Foxconn’s $1.54 billion investment in India is a significant development, solidifying the company’s growing presence in the South Asian market. With plans to double its workforce and investment by next year, Foxconn remains committed to supporting the Indian government’s ‘Make in India’ initiative.
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About the Author
Manish Singh is a senior reporter at TechCrunch, covering India’s startup scene and venture capital investments. Prior to joining TechCrunch in 2019, Manish wrote for about a dozen publications, including CNBC and VentureBeat. He graduated with a degree in Computer Science and Engineering in 2015.
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Related Topics
- Apple
- Foxconn
- Foxconn India
- India
- Venture
