The Taiwanese group Foxconn will invest billions of dollars to develop in India

2023-08-14 13:40:00

Seeking to reduce its presence in China, where most of its activities are concentrated, the Taiwanese company Foxconn, a key supplier to Apple, said on Monday that it saw the opportunity to invest “several billion dollars” in India, where it seeks to diversify its activity. The Taiwanese tech giant – also known by its official name Hon Hai Precision Industry – is the world’s largest contract electronics manufacturer and assembles devices for a host of companies, including Apple’s iPhones, in more than two dozen countries.

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The purchase of a huge piece of land on the outskirts of Bengaluru

“From the perspective of the potential size of the Indian market and whether we can fully implement our plans there, I think multi-billion dollar investments are just the start”, Foxconn Chairman Young Liu said when asked during a company earnings call whether it plans to invest $2 billion in India. Foxconn announced in May the purchase of a huge piece of land on the outskirts of India’s technology hub of Bengaluru for $37 million.

The group currently has nine production centers and has more than 30 factories in India, with “a turnover of approximately 10 billion dollars per year”, according to Young Liu. The company plans to expand its operations in India to “essential components” for consumer electronics and electric vehicles to boost its competitiveness, he said, without giving further details.

” The delivery (essential components) will probably have to wait until next year, but this year the necessary constructions have started”said Young Liu, adding that they would take place in three states of India.

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Foxconn last month pulled out of a $19.4 billion deal with India’s Vedanta group to manufacture semiconductors in the state of Gujarat, dealing a blow to New Delhi’s plan to boost the technology supply chain autonomy.

Slight drop in profits in the second quarter

Foxconn on Monday reported a 1% drop in second-quarter net profit, while revenue fell 14% year on year to 1.3 trillion Taiwan dollars ($40.8 billion), indicating a deterioration in the global electronics market during an economic downturn.

(With AFP)