Hon Hai to expand footprint in India with $1.6 bn investment

iPhone maker Hon Hai Precision Industry Co. plans to expand its footprint in India with another $1.6 billion investment for construction projects. The announcement, made in an exchange filing in Taiwan said that the investment was for “operational needs.” Hon Hai, also known as Foxconn, and other Taiwanese electronics manufacturers continue to diversify their businesses outside of China as tensions rise between Washington and Beijing. 

Approximately half of Foxconn's revenue is derived from its association with Apple Inc. The company has been engaged in the production of iPhones and other Apple products in India for several years, including the latest iPhone 15. A representative from Foxconn in India revealed on LinkedIn in September that the Taiwanese company intends to double its business size in the South Asian country. 

In August, the Karnataka state government in India disclosed that Foxconn was set to invest $600 million in two component factories within the southern Indian state. This investment encompasses the establishment of a plant dedicated to manufacturing mechanical enclosures for iPhones, along with a semiconductor equipment manufacturing plant in collaboration with Applied Materials Inc, as announced by the government at that time. 

This is in addition to the previously reported $700 million facility planned for a 300-acre site near the Bengaluru airport in Karnataka. The purpose of this new investment, totaling an undisclosed amount, remains unclear, and it is uncertain whether it includes funding for the aforementioned projects or pertains to additional ventures. 

The Bengaluru facility, located in the capital of Karnataka, is anticipated to span 300 acres (121 hectares) and is likely to be dedicated to iPhone assembly, as per previous reports from Bloomberg News. The latest investment announcement raises questions about its specific allocation among these projects or if it involves other endeavors. 

Foxconn is already deeply entrenched in India, operating nine production campuses and over 30 factories that provide employment for tens of thousands of individuals. The company generates approximately $10 billion in annual revenue from its operations in India.