<<Foxconn accelerates Indian investments, expanding diversification beyond China
Jingyue Hsiao, DIGITIMES Asia, Taipei
Thursday 7 December 2023
A Foxconn subsidiary announced a fresh investment in an Indian entity, highlighting Foxconn's commitment to ramp up its diversification move away from China.
According to a corporate filing by FIH Mobile, a subsidiary of Foxconn, to the Stock Exchange of Hong Kong, Bharat FIH Limited will make a capital injection in Rising Stars Hi-Tech Private Limited, a direct wholly-owned subsidiary of Bharat FIH incorporated in India, in an aggregate amount of US$50 million (about INR4 billion) as a long-term investment for working capital and general corporate purposes, and the injection is scheduled to be effected in December 2023.
This is the second investment Foxconn has made within two weeks. In late November, Hon Hai Precision, Foxconn's ultimate controlling stakeholder, announced a fresh investment worth NTD50 billion (US$1.6 billion) through Foxconn Hon Hai Technology India Mega Development Private Limited, another subsidiary of Foxconn, to build manufacturing facilities.
Also in late November, unnamed officials quoted by the Economic Times indicated that Apple's goal is to manufacture close to US$1 trillion worth of iPhones in India by either the end of March 2024 or possibly June 2024. They mentioned that Apple has increased production capacity with its manufacturing partners, achieving a production value of over 600 billion Indian rupees in iPhones between April and October.
Foxconn Hong Hai Technology India Mega Development Private Limited is engaged in iPhone and parts manufacturing, but Bharat FIH is not involved in iPhone manufacturing. According to the Bureau of Indian Standards, Bharat FIH makes smartphones and smart TVs for other Android device brands, such as Xiaomi, and parts for electric two-wheelers.
Still, Foxconn's investments in Indian entities within weeks may signal that Foxconn is expanding its production capacity to iPhone and other consumer electronics.
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Wall Street Journal report is behind a paywall:
<<Apple Aims to Make a Quarter of the World’s iPhones in India
Supplier Foxconn plans to build more factories and give India a production role once limited mostly to China
By Rajesh Roy in New Delhi and Yang Jie in Tokyo
Updated Dec. 8, 2023 12:01 am ET
Apple is facing an uphill battle as it plans to shift its production out of China. Here’s why it is difficult to replicate Foxconn’s ‘iPhone City’ in Zhengzhou and the company’s finely-tuned ecosystem in countries like India and Vietnam. Photo: Karen Dias/Bloomberg News
Apple and its suppliers aim to build more than 50 million iPhones in India annually within the next two to three years, with additional tens of millions of units planned after that, according to people involved.
. . . .>>