From Apple to India: Foxconn Unveils $1.54 Billion Investment Plan

Foxconn, the world's largest Electronics Manufacturing Services (EMS) provider, revealed plans to invest $1.54 billion in India.

This move is part of Foxconn's broader expansion strategy, driven by a significant increase in revenues within the South Asian market.

The Taiwanese company stated that this substantial investment is geared towards meeting its operational requirements.

Notably, this announcement comes just two months after Foxconn expressed its intention to double its workforce and investment in India by the following year.

Foxconn, known for collaborating with major tech players such as Apple, assembles devices in Indian plants.

Many industry analysts view this trend as part of a larger shift by tech giants towards establishing a "China+1" manufacturing base in India.

The investment from Foxconn in India is seen as a strategic move, given the slowdown in its investment in China since 2018, attributed in part to the trade tensions between the United States and China.

Despite withdrawing from a $19.5 billion chipmaking joint venture with Vedanta earlier in the year, Foxconn remains optimistic about India's growth potential.

The company affirmed its commitment to supporting the Indian government's 'Make in India' initiative and building diverse local partnerships.

In August, Foxconn disclosed plans to invest $600 million in two projects located in the southern Indian state of Karnataka.

These projects focus on chip equipment manufacturing and casing components for iPhones.

Goldman Sachs analysts, in a recent report, highlighted the positive trajectory of Foxconn's revenues in India, projecting a significant increase to NT$62 billion for the most recent quarter, representing a 53% year-over-year growth.

The report emphasized the growing importance of a diversified production base to meet the needs of global-tier clients, positioning Foxconn to maintain its leading market position in EMS.

Manish Singh / TechCrunch