Foxconn, the global tech giant also recognized as Hon Hai, is set to expand its operations in India beyond mere product assembly and delve into the production of crucial components. The company, which initiated its presence in India in 2005, has witnessed substantial growth in revenue, workforce, and investments within the country. This shift in strategy was confirmed by Young Liu, CEO and Chairman of Hon Hai Technology Group, during a recent earnings conference call.
Everything You Need to Know about Foxconn’s Expansion
Despite its reputation as a primary supplier to Apple and other smartphone manufacturers, Foxconn is now gearing up to take an active role in India’s competitive market by concentrating on essential components.
Presently, Foxconn’s activities are primarily based in Andhra Pradesh and Tamil Nadu states, with plans to extend its footprint into regions like Karnataka and Telangana. Collaborating closely with central and local government bodies, the company intends to establish industrial complexes that will enhance the business environment through improved infrastructure, policies, and legislative frameworks.
A significant development includes Foxconn’s board approving an additional investment of $400 million in Telangana, raising the total investment in the state to $550 million. This new facility is intended to become a key hub for Foxconn Interconnect Technology’s operations, contributing to the expansion of production capacity in Telangana.
Apart from its primary contract manufacturing activities, Foxconn has also ventured into the semiconductor sector. Despite discontinuing its joint venture with Vedanta led by Anil Agarwal, the company remains committed to India and is actively pursuing new collaborations for its semiconductor initiatives in the country. Reports suggest that Foxconn is contemplating the establishment of multiple semiconductor fabrication lines in India.
In late July, Foxconn’s Chairman Young Liu participated in the inaugural keynote of the Semicon India event held in Gandhinagar, Gujarat. During the event, Liu emphasized the strong partnership between Taiwan and India, stating that “Taiwan is and will be your most trusted and reliable partner.”
Beyond its activities in India, Foxconn is dedicated to implementing the Build-Operate-Lease (BOL) strategy in Southeast Asian countries such as Vietnam, Thailand, and Indonesia. This initiative aims to bolster local partners’ supply chains and enhance domestic competitiveness. The company is also actively sharing global resources with its partners to expand its local market presence.
Despite being a traditionally off-peak season, Foxconn’s second-quarter 2023 total revenue reached NT$1.3045 trillion (approximately $40.85 billion), marking a 14% decrease from the previous year. Gross profit and operating income both experienced a 14% decline, with net profit falling by 1% compared to the previous year. While gross and net profit margins showed marginal increases, operating profit margins decreased from the same period.
