Foxconn Pours $1.5 Billion Into Indian Expansion for iPhone Production

In a decisive move mirrored by an industry grappling with a post-pandemic landscape and geopolitical shake-ups, Foxconn Technology is setting its sights on the Indian market with a considerable investment of over $1.5 billion. This latest development was revealed in recent Taiwanese securities filings. However, the specifics of this latest investment, as well as Foxconn’s broader Indian expansion strategy, remain shrouded in mystery, with the securities filings providing no further information.

The investment was processed through Hon Hai Technology India Mega Development, a subsidiary of Foxconn that has been established in Maharashtra, India, since 2015. The filings indicate that these funds will be set aside for a significant construction project, the details of which are geared toward satisfying the company’s operational requirements.

Known as a key Apple supplier, Foxconn’s large-scale operations extend across mainland China and are an integral cog in the mechanism behind iPhone production. However, the COVID-19 pandemic severely disrupted their production line in 2022, as worldwide lockdowns brought manufacturing processes to a near halt.

These disruptions, coupled with ongoing geopolitical instability, have led to companies like Foxconn reconsidering their reliance on China. In a bid to diversify its operational base, Foxconn has already launched multiple projects within India. Its portfolio includes a $600 million project in the state of Karnataka and a $500 million factory in Telangana.

Finally, according to CNBC, this “fresh investment comes a few months after Foxconn pulled out of a $19.5 billion chipmaking joint venture in India by ‘mutual agreement,’ the company said at the time. Foxconn added it remained ‘confident’ about India’s semiconductor industry ambitions.”