Foxconn to invest $1 Billion in India
The Taiwanese Electronic Contract Manufacturer, Foxconn Technology Group is planning to invest $1 Billion in India.
Foxconn manufactures electronic products for major American, Chinese, Canadian, Finnish and Japanese Companies. Some of the notable products manufactured by Foxconn are iPhone, iPad, Blackberry, Kindle, etc.
According to a report by Reuters, the Foxconn Company which assembles Apple iPhones is planning to invest $1 Billion to expand its factory in Tamil Nadu. This move is reportedly a part of Apple’s moves to shift iPhone production away from China in order to reduce its dependence on China.
It is believed that Apple had been looking for a gradual production shift from China due to potential disruptions arising out of deteriorating relations between Washington & Beijing and also due to the Coronavirus crisis.
However, Apple and Foxconn did not make any comments on the report by Reuters.
Foxconn has two plants in Tamil Nadu and Andhra Pradesh where it assembles Apple and Xiaomi smartphones. Foxconn’s Tamil Nadu plant in Sriperumbudur (50 km from Chennai) manufactures Apple’s cheaper flagship-class – iPhone XR. It earlier used to manufacture the older version of the iPhone SE.
Foxconn is planning to make the investment in Sriperumbudur Plant which will take place over a period of three years. Some of the iPhone models manufactured at Foxconn’s plant in China will be manufactured in this plant. As a part of its investment, the Company also plans to add 6000 jobs at its Sriperumbudur plant.
It is also noted that Foxconn Chairman Liu Young-way had earlier made a statement that “India is a bright spot for development” at the Company’s Annual General Meeting last month. He had said “We are fully pushing ahead with the next steps there (India), and maybe in a few months time, we can reveal on our website the next steps and report back to everyone. We’ll have a further investment there,” without detailing the plans or reasons for the firm’s view.
Last month, India had launched a Rs 50,000 crore “Electronics Manufacturing Schemes” plan to boost electronics manufacturing in the country, which would start by way of offering sops to global smartphone makers to establish domestic production lines.
Shortly after the announcement, Union Electronics & Information Technology Minister Ravi Shankar Prasad had said that the motive behind launching the scheme is to make India a manufacturing hub.
It is believed that Foxconn’s investment in India is the first step towards making India a manufacturing hub.
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