FIH Mobile, a subsidiary of iPhone maker Hon Hai Precision Industry Co, also known as Foxconn, said its India arm Bharat FIH will invest INR 400 Cr ($48 Mn) in the company’s wholly-owned India subsidiary Rising Stars Hi-Tech.
The infusion marks a long term-investment for working capital and general corporate purposes, the company said in a stock exchange filing in Hong Kong.
“The capital injection is currently scheduled to be effected in December 2023,” the filing added.
FIH said that the funding will increase the issued share capital of Rising Stars Hi-Tech to INR 450 Cr.
Established in 2015, Andhra Pradesh-based Bharat FIH is one of the vendors of smartphone majors like Apple and Xiaomi. Other than assembling iPhones for Apple, the company also makes mobile phones, electric vehicle components, telecom network equipment, televisions and hearables, among others.
The announcement comes days after Foxconn said it would invest more than $1.5 Bn in India to meet the operational needs.
Apart from growing its Apple business, Foxconn also aims to expand its India footprint. In September, the company announced plans to double its India employment, investment and business size in one year.
In addition to assembling Apple’s products, the company is also planning to venture into the semiconductor and electric vehicle spaces in India. It has already partnered with French-Italian semiconductor company STMicroelectronics to start manufacturing semiconductors in India.
The development comes at a time when Apple is rapidly ramping up manufacturing in India amid geopolitical tensions between Beijing and Washington. India now accounts for about 7% of total iPhones produced globally.
Earlier this week, Minister of Electronics and Information Technology Rajeev Chandrasekhar said that the Cupertino-based tech giant is bringing its global lithium-ion battery manufacturer, TDK Corporation, to India. The Japanese company plans to set up a manufacturing plant in Haryana to manufacture battery cells for iPhones produced in the country.
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