Foxconn Expansion Plan: iPhone Manufacturer Hon Hai Considering To Invest $1.6 Billion In India

Hon Hai Technology, also known as Foxconn has announced its expansion plan which includes an investment of $1.6 billion to set up a factory in India, reported Bloomberg on Monday.

Foxconn, a renowned Apple supplier, said its unit Foxconn Singapore received 12.83 billion shares of Foxconn Hon Hai Technology India Mega Development for $1.54 billion.

The company announced the investment plan in a stock exchange filing in Taiwan. However, no further details regarding this investment plan were provided by the company.

The company's Chairman Liu Young-way had also said in an earnings briefing in August that he sees a lot of potential in India, adding that "several billion dollars in investment is only a beginning".

The news comes as Hon Hai, also known as Foxconn, and other Taiwanese electronics manufacturers continue to diversify their businesses outside of China as tensions escalate between Washington and Beijing.

Around 50% of Foxconn's revenue is generated from business with Apple Inc. The company has been manufacturing iPhones and other products in India for several years, including the latest iPhone 15. In September, a Foxconn representative in India said on LinkedIn that the Taiwanese company plans to double the size of its business in the South Asian country.

In August this year, the Karnataka state government announced that Foxconn planned to invest $600 million in two-component factories in the state. That included a plant that will make mechanical enclosures for iPhones and a semiconductor equipment manufacturing plant it will operate with Applied Materials Inc, the government said at the time.

Those two projects are on top of a $700 million facility Foxconn intends to build on a 300-acre (121 hectares) site close to the airport in Bengaluru, the capital of Karnataka, Bloomberg News previously reported. That plant is expected to assemble iPhones.

Meanwhile, it is still not clear if the latest investment announcement is to cover those projects or new ones.

Foxconn already operates nine production campuses and over 30 factories employing tens of thousands of people in India, where it takes in roughly $10 billion of revenue annually.

Hon Hai Precision Industry Co., Ltd., commonly known as Foxconn, is a Taiwanese multinational electronics contract manufacturer.