The Taiwanese technology giant Foxconn, one of the main manufacturers of the iPhone smartphones of the American company Apple, intends to expand the scale of its presence in India by allocating investment funds for $1.6 billion in new construction projects.
Last Monday, November 27, the mentioned company made a corresponding announcement through the exchange in Taiwan. The firm stated that the new investments are designed to meet operational needs. So far, there is no information about the location of the new objects. There is also no data on the functional purpose of the said objects. When asked by the media for comments on the new investments, a Foxconn representative refused to provide any additional information.
This decision of the specified manufacturer is a reflection of the general trend among Taiwanese electronics makers to diversify production capacities outside of China. These are forced measures against the background of tensions in relations between Washington and Beijing. The United States has restricted Chinese companies’ access to advanced chips, explaining this decision by concerns that an Asian country could use microcircuits to strengthen military capabilities. As part of the countermeasures, Beijing has restricted exports of germanium and gallium applied in the semiconductor industry. China has also plans to complicate the supply of graphite used in making batteries for electric cars.
In the revenue structure of Foxconn, the share of earnings received as a result of cooperation with Apple is about 50%. This manufacturer has already launched the production of the iPhone and other products of the American technology giant in India.
In September, a Foxconn representative in the said South Asian country announced on a LinkedIn account that the company plans to double the size of its Indian business. New investments confirm this intention.
In August of this year, the government of Karnataka, located in southwestern India, announced that Foxconn plans to allocate funding for the construction of two factories for the production of components in this region. In this case, one of the objects is the plant for making mechanical cases for iPhones. The second factory specializes in the production of semiconductor equipment in partnership with Applied Materials Inc.
Foxconn is also implementing a project to build a 300-acre facility near Bangalore Airport in Karnataka. There is no information about the functional purpose of this object. The cost of the project is $700 million. The media suggest that the manufacturing of the iPhone will be established at the plant.
Foxconn currently operates nine production campuses and more than 30 factories in India. The company provides jobs for tens of thousands of residents. The annual revenue from the activities of Foxconn India is about $10 billion. The company’s total annual revenue is more than $200 billion.
Foxconn chairman Young Liu said that in 2023, the capital investments of this brand in the South Asian country will increase compared to last year.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
