Foxconn to invest $1.5 billion in India under China+1 strategy

Taiwanese electronics manufacturer Foxconn has revealed plans to invest $1.54 billion in India as part of its ongoing expansion strategy, spurred by a significant revenue surge in the South Asian market. The investment, aimed at fulfilling operational needs, follows Foxconn's announcement two months ago about doubling its workforce and investment in India by the next year.

In a stock exchange filing, Foxconn, which collaborates with various companies, including Apple in assembling devices in Indian plants said that the investments will ‘fulfil its operational needs.’ 

This move aligns with the trend of tech giants shifting part of their manufacturing base to India, often referred to as "China+1," particularly amidst the ongoing US-China trade tensions.

Foxconn operates three manufacturing campuses in India and withdrew from a $19.5 billion chipmaking joint venture with Vedanta earlier this year. Despite this, the company remains confident in India's ambitions, stating, "Foxconn has no intention to do anything but continue to strongly support the government’s ‘Make in India’ ambitions and establish a diversity of local partnerships that meet the needs of stakeholders."

The recent investment announcement follows Foxconn's August plans to invest $600 million in two projects in the southern Indian state of Karnataka, focusing on chip-equipment manufacturing and casing components for iPhones.

For the most recent quarter (3Q23), Foxconn's revenues from India increased to NT$62 billion, marking a 53 per cent year-on-year growth from a low base. This elevated India's revenue contribution to 3.3 per cent in 9M23 compared to around 2 per cent in 2021-22, according to a report by Goldman Sachs analysts.