Taiwan’s Hon Hai Precision Industry, widely known as Foxconn, revealed its intention to invest nearly (New Taiwan) NT$50 billion (USD 1.59 billion) in India through its subsidiary, Foxconn Hon Hai Technology India Mega Development Private Ltd.
The investment aims to meet operational needs, with plans to construct a new plant in line with a “China plus one” strategy, diversifying production beyond China due to trade tensions.
Expansion in India for iPhone Production
The subsidiary, established in 2015, has already acquired land in Bengaluru for NT$3 billion and purchased production equipment from Apple Operations Ltd. for USD 33.27 million.
Analysts suggest that this investment positions Foxconn to enter the new product introduction (NPI) stage for the iPhone 15 series, with plans to transform its Indian production complex into a significant iPhone manufacturing base.
Concurrently, Foxconn plans to construct an iPhone assembly facility in Bengaluru’s Devanahalli by April 2024.
India’s Growing Role in Global iPhone Production
Research notes from Tianfeng Securities Co. anticipate India contributing 12-14% of global iPhone production in 2023 and increasing to 20-25% in 2024. Notably, Apple plans to initiate the NPI process for the next iPhone generation in India, marking a departure from its traditional reliance on Chinese facilities.
Foxconn also reported that its subsidiary, Foxconn Singapore Pte Ltd, spent USD 1.54 billion to acquire shares of Foxconn Hon Hai Technology India Mega Development. The company’s robust third-quarter net profit of NT$43.13 billion reflects strong iPhone 15 series sales and favorable exchange rates.