Apple supplier Foxconn plans to invest $1.5 billion in India, the latest in its growing expansion plan, following a surge in revenues in the South Asian market.
The company, Taiwan’s largest electronics contract manufacturer, will build a new plant in the southern Indian state of Telangana to make computer servers, according to a stock exchange filing Monday. Foxconn said the investment will help fulfill “operational needs.”
The investment comes two months after the Taiwanese firm said it plans to double its workforce and investment in India by next year. The company has been expanding its manufacturing base in India in recent years as it seeks to diversify away from China, where labor costs have been rising.
“Foxconn’s continued investment in India is a testament to the country’s growing importance in the global electronics manufacturing industry,” said analyst Neil Shah of Counterpoint Research. “India is a key market for Foxconn, and the company is investing heavily to expand its capacity there.”
Foxconn’s expansion in India comes as Apple is also looking to increase its manufacturing presence in the country. The iPhone maker is reportedly looking to move up to 25% of its global production to India by 2025, up from about 15% today.
India’s government has been actively wooing foreign electronics manufacturers in recent years, offering incentives such as subsidies and tax breaks. The country has also been investing in infrastructure, such as roads and power plants, to make it more attractive to manufacturers.
“India has the potential to become a major hub for electronics manufacturing,” said Shah. “The country has a large and skilled workforce, a growing economy, and a government that is supportive of the industry.”
Foxconn’s $1.5 billion investment is the largest ever by a foreign electronics manufacturer in India. The investment is expected to create thousands of jobs and boost the Indian economy.
“This is a major boost for India’s electronics manufacturing sector,” said Shah. “It will help to attract other foreign manufacturers to India and create a more vibrant ecosystem for the industry.”
Additional Information
- Foxconn is a Taiwanese electronics contract manufacturer that is the world’s largest company by revenue.
- Foxconn is a major supplier to Apple and makes a variety of products for the company, including iPhones, iPads, and Macs.
- Foxconn has been expanding its manufacturing base in India in recent years, and now has a number of factories in the country.
- India is a growing market for electronics, and the government is actively wooing foreign manufacturers to invest in the country.
- Foxconn’s $1.5 billion investment is the largest ever by a foreign electronics manufacturer in India.