Taiwanese major Foxconn, which hit headlines recently after it parted ways with Anil Agarwal led Vedanta Group for manufacturing of semiconductors, is now firming up massive investment plans in India. Through a LinkedIn post on Sunday, V Lee Foxconn’s representative in India, announced doubling of investment and employment in India. At present, the company’s investments in India are estimated at around $ 8 billion.
Foxconn Hon Hai is among the three vendors that assemble Apple’s iPhones in India. The other two vendors are Pegatron and Wistron.
However, a report published by ET Telecom said that the company has much larger investment plans.
“While they have written that they will double (their investment), their plan is to actually increase (their investment) by five times in the next three years,” an unnamed government official told the news organization.
In July, Vedanta and Foxconn Technology Group parted ways. Even as the move led to speculations that the Taiwanese major could be thinning its investments in India, Foxconn said that it remained committed to the Indian market.
Foxconn’s Indian operations generate close to $10 billion annually. Earlier at the company’s second quarter earnings call, Young Liu, chairman and CEO of the electronics giant said “From the perspective of India’s potential market size and if we can fully implement our plans there, several billion dollars in investment is only the beginning.”
In July, Liu met Prime Minister Narendra Modi at the Semicon India 2023 conference in Gujarat. Foxconn said that it is now planning to go solo in its endeavour to build a semiconductor manufacturing plant in the country.
Foxconn already has nine campuses in India.
“We have over 30 factories in India. The turnover and business size are roughly $10 billion annually. We have over 20 dormitories that shelter tens and thousands of employees that work with Foxconn in India,” Liu said, adding that the company’s revenue, investments and number of employees have grown exponentially since it started operations in India.
Earlier a report by Nikkei Asia noted that India’s large consumer base, labour pool, youthful demographics, highly skilled professionals along with steady economic growth and rising incomes will drive the new wave of investments.