iPhone maker Foxconn’s Indian arm, Foxconn Hon Hai Technology India Mega Development, has earmarked an investment of another $1.6 Bn (INR 12,820 Cr) to fuel its construction projects in the country.
In a regulatory filing with the Taiwan Stock Exchange, the company on Monday (November 27) cited ‘operational needs’ for the investment, adding that the infusion would be utilised to engage ‘others to build on owned land’.
There is no clarity on the projects that the company aims to undertake with the funds.
In a separate filing with the bourses, parent Hon Hai Technology Group (also known as Foxconn) said that its subsidiary Foxconn Singapore will pick up an undisclosed amount of stake in the Indian arm. It said that the former will acquire more than 1,282 Cr shares at a price of INR 10 each. This would translate into an investment of $1.54 Bn (or INR 12,820 Cr).
This comes three months after parent Hon Hai Technology Group’s chairman and chief executive officer (CEO) Young Liu said that the company would pump billions of dollars in India country on the condition that it is fully able to implement its plans. After that, the company also reportedly said that it was looking to double the size of its business in the country.
The move is largely in line with the company’s plans to diversify its production outside of China amid ongoing tensions between Beijing and Washington.
The back to back developments come as Foxconn has sped up plans to build a $700 Mn facility on the outskirts of Bengaluru. Spanning 300 acres, the unit will be the newest production facility for the company to manufacture iPhones in the country.
Besides, the contract electronics manufacturer also previously said that it would invest an additional $600 Mn on two separate facilities in Karnataka. This reportedly includes a facility that will make mechanical enclosures for iPhones and a separate semiconductor equipment manufacturing facility that it will operate jointly with Applied Materials.
The focus on India is not without reason. Its Indian arm clocked an annual turnover of $10 Bn at the end of the second quarter of 2023, the company said in August. A company executive then also said that Foxconn India’s metrics such as revenue, number of employees, and investments had grown ‘exponentially’ since it stepped foot in the country.
Foxconn is also said to be looking at India as its third global hub for electric vehicle (EV) contract manufacturing and is eyeing a production of 500K-700K EVs by 2025. In addition, it has set its eye on expanding its Apple product lineup and scaling production of the products in the country.
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