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Foxconn announces investment of $ 1.5 billion in India

Utkarsh Classes 28-11-2023
Foxconn announces investment of $ 1.5 billion in India Banking and Finance 5 min read

Taiwanese electronics manufacturing company Foxconn has planned to invest more than 1.6 billion dollars i.e. about Rs 13 thousand crores in India. The company announced this in an exchange filing in Taiwan late night on 27 November 2023.

  • According to information given by Foxconn to the stock exchange in Taiwan, this investment would help Foxconn to meet its operating needs.
  • The investment announcement has come two months after the Taiwanese company made public plans to double its workforce and investment in India by next year.

Foxconn has worked with many other tech giants including Apple:

  • Foxconn does manufacturing work with many other big tech giants, including Apple.
  • Foxconn is working towards strengthening plants in India as many tech giants want to shift a part of their manufacturing to India. Knowingly some consider it a part of China Plus One policy.
    • By adopting China Plus One strategy, companies expand the scope of their business outside China. However, during this period the company did not completely close its business in China.

After China, Foxconn is focusing on manufacturing activities in India:

  • Foxconn, which is the largest EMS (Electronic Manufacturing Services) provider globally.
  • The company invested extensively in China from 2001 to 2017, although this has decreased significantly since 2018 after increasing trade tensions between the US and China.
  • Foxconn, which operates three manufacturing complexes in India, had earlier this year walked out of a deal to set up a $19.5 billion chipmaking joint venture with Vedanta. However, the company has said that it will continue its work in India and is confident about India's ambitions.

Foxconn will continue to support Make in India:

  • According to Foxconn, starting afresh in a new location is a challenge, but Foxconn is committed to investing in India.
  • Foxconn has been working on such challenges since the 1980s. Foxconn would continue to strongly support the Government of India's 'Make in India' ambitions and address the needs of stakeholders.
  • In August 2023, Foxconn announced it would invest $600 million in two projects in Karnataka to manufacture chip-tools and casing components for the iPhone.

Foxconn plans to double jobs in India:

  • Company representative Wei Li, while wishing Prime Minister Modi on his 73rd birthday, had said, 'Foxconn has planned to double its workforce and investment in India.’

Foxconn has given jobs to 40,000 people in Tamil Nadu plant:

  • According to a report, 40,000 people currently work in Foxconn's Tamil Nadu plant. Whereas, last year Reuters had reported that Foxconn is planning to hire 53,000 people in the next two years.

Foxconn is participating in the PLI scheme of the Government of India:

  • All three of Apple's contract manufacturers (Foxconn, Wistron and Pegatron) are part of the Indian government's Rs 41,000 crore production-linked incentive scheme (PLI). Only after this scheme, the pace of iPhone manufacturing in India has increased. The Government of India launched the PLI scheme in 2020.

Foxconn will set up 4-5 semiconductor plants in India:

  • Foxconn wants to set up 4-5 semiconductor chip manufacturing units in India. A day after Foxconn broke the joint venture with Vedanta, it had informed the Electronics and Information Technology Ministry about it.

FAQ

Answer:- Foxconn has planned to invest more than 1.6 billion dollars i.e. about Rs 13 thousand crores in India.

Answer:- Taiwanese electronics manufacturing company Foxconn has planned to invest more than 1.6 billion dollars i.e. about Rs 13 thousand crores in India.

Answer:- The Government of India launched the PLI scheme in 2020.
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