Foxconn has announced its intention to invest $1.54 billion in India as part of its ongoing expansion strategy, driven by a significant increase in revenues in the South Asian market. The investment, aimed at meeting operational requirements, comes just two months after the Taiwanese company expressed plans to double its workforce and investment in India by the following year.
In a stock exchange filing, Foxconn, the largest global EMS provider, revealed that this move aligns with the trend of many tech giants, including its collaboration with Apple, shifting manufacturing operations to India, often referred to as “China+1” due to the US-China trade tensions. While Foxconn experienced a substantial increase in investment in China from 2001 to 2017, growth slowed after 2018.
Earlier in August, Foxconn had already disclosed plans to invest $600 million in two projects in the Southern Indian state of Karnataka, focusing on chip-equipment manufacturing and casing components for iPhones.
Despite a recent withdrawal from a $19.5 billion chipmaking joint venture with Vedanta, Foxconn remains confident in India’s potential. Foxconn currently operates three manufacturing campuses in India. The company also emphasized its commitment to supporting the Indian government’s “Make in India” initiative and establishing diverse local partnerships to meet stakeholder needs.
According to Goldman Sachs analysts, revenues from India continued to rise in the most recent quarter (3Q23), reaching NT$62 billion, a YoY increase of 53%. This growth has elevated India’s revenue contribution to 3.3% in 9M23 compared to approximately 2% in the previous year 2021-22. The analysts attribute this increase to global-tier clients seeking a diversified production base, reinforcing Foxconn’s leading market position in EMS with its extensive global footprint.