Foxconn To Seek Cooperation From The Indian Government for EVs and Semiconductor Chips, Plans To Make Investments Worth 1 Billion INR
Foxconn, the Taiwan-operated company, has been looking to expand its operations in South Asian countries after they suffered severe disruptions due to the zero-covid policy in China.
Apple supplier Foxconn has stated that it is looking for Indian partners to cooperate in sectors including semiconductor chips and electric vehicles. The news has been brought to light by various media sources. The development has come after Foxconn, also known as the Hon Hai Technology Group chairman and the CEO made his visit to India.
Foxconn, the Taiwan-operated company, has been looking to expand its operations in South Asian countries after they suffered severe disruptions due to the zero-covid policy in China. However, the restrictions were removed and the company operated in the early part of this year.
Young Liu has recently said that his trip to India has supported Foxconn’s initiatives to deepen the relationships with India in emerging sectors like semiconductor chips and vehicles.
He added in an interview that his trip was intended to deepen the efforts between India and China and seek cooperation in newer areas.
Liu has even asserted that Foxconn will continue to communicate with the local government to look out for benefiting developmental scopes for the company. The firm, which is popular for manufacturing Apple’s iPhones is one of the largest contract makers of electronics. The company has now entered into other segments like electric vehicles.
Foxconn has its factories established in Tamil Nadu and Andhra Pradesh. Recently, Foxconn announced a crucial investment in Karnataka that will create one lakh employment opportunities. This has been stated officially. Around 300 acres of land have been assigned for the construction of industries near the Bengaluru International Airport in Doddaballapura and Devanahalli taluks.
During his visit, President Liu met with Prime Minister Narendra Modi. They have talked about matters involving the enhancement of innovation and the tech ecosystem in India. After the meeting, Narendra Modi took over his Twitter platform and posted that he had a good meeting with Young Liu. The discussions covered different issues like enhancing India’s tech ecosystem.
People aware of the negotiations between Foxconn and the Indian government have stated that the largest contract maker plans to invest somewhere between 500 million and 1 billion USD in the duration between 2023 and 2027. The plant will be directed at manufacturing iPhones and other electronic appliances.
The announcement in Karnataka has come after the Telangana government announced that Foxconn has decided to establish a manufacturing plant in the state.
The announcement added that the company hopes that its investments will create indirect and direct jobs for the local communities. The employment figures stated will not account for the direct jobs in the company.
Foxconn has not revealed accurate investment figures. They have mentioned that being a publicly listed company, the latter will disclose the investment plans at the correct time when it would be required by the Taiwan security regulators.
The company’s rapid expansion in India involves plans for the setting up of new plants and increasing the capacities in the existing facilities. It will help to produce more iPhones as part of the strategy.
The company’s enhanced push in India is because of the strong domestic demand for the devices and the hike in its exports. It is followed by the diversification of the supply globally.
Foxconn enters the EV Market in India:
Apart from manufacturing smartphones, the company has collaborated with the Vedanta group for the manufacture of semiconductors. The joint venture has marked the biggest corporate investment in India, and both companies have signed the Memorandum of Understanding in Gujarat, followed by the Gujarat Government to invest 154,000 crores INR for the establishment of the plant in the state.
Young Liu expressed his interest in the manufacturing of electric vehicles when he last met Modi. Foxconn already has its own flagship EV brand that is competing with Tesla. It is not yet clear if the former is seeking to be a contract manufacturer for other EV brands in India or manufacture its vehicles in the nation.
The continued investments in India can prove to be a big threat to China. The disruption in operations in China has caused other American suppliers to look for alternate options globally, including India and Vietnam.
For years, Apple has relied on a sizable manufacturing network in China to produce large quantities of the iPhone, iPad, and other well-known products. The nation’s reliance on it was put to the test last year, though, by Beijing’s strict zero-Covid plan, which was swiftly abandoned in December of last year.