"Foxconn Announces $1.6 Billion Investment in India as Part of China+1 Strategy"

In a significant move to bolster its presence in India, Hon Hai Precision Industry Co., the renowned iPhone manufacturer, commonly known as Foxconn, has declared a substantial investment of New Taiwan (NT) $50 billion (equivalent to $1.6 billion USD). The decision aligns with the company's strategic objective to diversify its operations beyond China.

The announcement, disclosed through an exchange filing in Taiwan, provided minimal details, citing the investment as necessary for "operational needs." The considerable investment was channeled through Foxconn's subsidiary, Hon Hai Technology India Mega Development, a registered entity in Maharashtra since 2015.

As the largest contract manufacturer for Apple globally, Foxconn derives half of its revenues from producing Apple devices. Even within India, Foxconn's production of Apple products surpasses that of its competitors, Tata and Pegatron.

Foxconn has already invested nearly $8 billion in India and is poised to escalate its commitment to the country amid escalating tensions between the United States and Beijing. With over 40,000 employees, the company operates on nine campuses, collectively exceeding the size of 500 football fields. The 30 factories in India contribute $10 billion to the annual revenue, representing 4.6% of the company's $216 billion in 2022 revenue—a substantial increase from the 2% recorded in 2021.

In addition to existing operations, Foxconn is in the process of constructing a new electronic components manufacturing facility in the Kancheepuram district in Tamil Nadu. The company is also contemplating an investment of ₹8,800 crore in Karnataka for establishing an iPhone component unit, a venture that could generate 14,000 new jobs. Part of the $1.6 billion investment may be allocated to this endeavor. Earlier this year, Foxconn officials explored available land in Tumakuru, Karnataka, as a potential site for the facility, focusing on manufacturing screens and outer coverings crucial for phones.

HBL