Foxconn's ambitious expansion: Apple to invest $1.6B in India for new ventures

In a strategic move to deepen its roots in India, Taiwanese technology giant, Hon Hai Precision Industry Co., widely known as Foxconn, has disclosed plans for a substantial investment of $1.6 billion in new construction projects, as reported by Bloomberg News.

This announcement, made through a Taiwan exchange filing on Monday, underscores Foxconn's commitment to meeting operational needs. However, specific details regarding the location and nature of these new facilities remain undisclosed.

Diversification trend amid global tensions

This significant investment aligns with a broader trend observed among Taiwanese electronics manufacturers, including Foxconn, who are actively diversifying their operations beyond China. The escalating tensions between Washington and Beijing have prompted these industry leaders to explore new avenues and geographies for their business expansions.

Approximately half of Foxconn's revenue is derived from its collaboration with tech giant Apple Inc. The company has been actively involved in iPhone manufacturing and other product ventures in India for several years, with its footprint extending to the production of the latest iPhone 15.

This move not only solidifies Foxconn's position in the Indian market but also showcases its resilience and adaptability in the ever-evolving global tech landscape. In September, a representative of Foxconn in India hinted at the company's intention to double its business size in the South Asian nation, signalling a sustained and robust growth trajectory.

Strategic investments in Karnataka & beyond

Earlier in August, Foxconn's plans to invest $600 million in two-component factories in the southern state of Karnataka came to light. These include a facility focused on manufacturing mechanical enclosures for iPhones and a semiconductor equipment manufacturing plant in collaboration with Applied Materials Inc.

Additionally, the company is progressing with a $700 million facility near the Bengaluru airport in Karnataka, hinting at a continued focus on iPhone assembly.

With nine production campuses and over 30 factories in India, Foxconn already plays a pivotal role in the country's manufacturing landscape, providing employment for tens of thousands.

The annual revenue of approximately $10 billion from its Indian operations underscores the scale and impact of Foxconn's presence in the region. As the company expands its footprint, the recent investment announcement raises anticipation about potential new projects and initiatives on the horizon.