2023-08-14 12:54:14
Taiwanese tech giant Foxconn, a key supplier to Apple, said Monday it sees the opportunity to invest “several billion dollarsin India, where the company is looking to diversify its business. Foxconn – also known by its official name Hon Hai Precision Industry – is the world’s largest contract electronics manufacturer and assembles devices for many companies, including Apple’s iPhones. It has operations in more than two dozen countries, but the bulk of it is in China – a reliance it seeks to reduce. “From the perspective of the potential size of the Indian market and whether we can fully implement our plans there, I think multi-billion dollar investments are just the start.Foxconn Chairman Young Liu said when asked during a company earnings call whether it plans to invest $2 billion in India.
Foxconn announced in May the purchase of a huge piece of land on the outskirts of India’s technology hub of Bengaluru for $37 million. The group currently has nine production centers and has more than 30 factories in India, with “a turnover of approximately 10 billion dollars per year“, according to Mr. Liu. The company plans to expand its operations in India to “essential componentsfor consumer electronics and electric vehicles to boost its competitiveness, he said, without giving further details. “Delivery (of essential components) will probably have to wait until next year, but this year the necessary constructions have startedsaid Liu, adding that they would take place in three states in India.
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Foxconn last month pulled out of a $19.4 billion deal with India’s Vedanta to manufacture semiconductors in Gujarat state, dealing a blow to New Delhi’s plan to boost the technology supply chain autonomy. Foxconn on Monday reported a 1% drop in second-quarter net profit, while revenue fell 14% year on year to 1.3 trillion Taiwan dollars ($40.8 billion) – an indication of deterioration of the global electronics market during an economic downturn.
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