Foxconn plans $5 billion investment in Indian facility

Photo of author

By Larry Banks

Foxconn, the largest electronics manufacturer in the world and one of Apple’s main suppliers, has just signed a deal with India’s Maharashtra’s state to invest $5 billion over five years in a new manufacturing facility.

Foxconn to invest in India

The announcement came this week from Foxconn founder Terry Gou and the chief minister of Maharashtra, Devendra Fadnavis, after the deal was signed in the state’s capital Mumbai.

The announcement will boost Indian Prime Minister Narendra Modi’s Made in India campaign which aims to turn India into a manufacturing powerhouse.

Gou said that Foxconn, the trade name for Hon Hai Precision Industry Co Ltd (which includes BlackBerry and Xiaomi as customers) was looking for local partners in the western Indian state.

He did not say however if the Taiwan-based company would manufacture mobile phones at the new facility.

India should be able to help Foxconn offset rising wages in China, where the majority of iPhones are currently made, and could base its production sites closer to markets where its clients expect growth.

On Tuesday, Gou said that he would set up manufacturing units in various Indian states and partnerships in the fastest growing smartphone market in the world…

He said earlier in May that Foxconn would develop up to 12 facilities in India – including factories and data centres – by 2020. Local businesses hope that as Foxconn and others invest in India, more suppliers will follow.

According to Fadnavis, the new Foxconn plant will generate employment for 50,000 people. Foxconn currently employs around 1.3 million people at peak times, making it one of the largest in the world. But it is still working on improving labour conditions…

SOURCE: Reuters.

Images Courtesy of DepositPhotos