Our Bureau
New Delhi
The electronic giant based in Taiwan, Hon Hai Precision Industry Co, globally known as Foxconn is all set to invest over $2.2 billion in India and the United States. The Taiwanese giant has finally secured an approval from the Ministry of Economic Affairs in Taiwan. Out of the $2.2 billion, around $1.49 billion will be routed through the Yuzhan Technology (India) Private Ltd which is a subsidiary based in Singapore.
As per the reports citing Focus Taiwan, this investment by Foxconn will be used to establish a manufacturing facility in India that will be used to produce new iPhones and their various components. This is being viewed as a strategic move from Foxconn’s end by the experts citing the growing trade tensions between China and the United States.
As per the experts, Foxconn is looking to move its supply chain from China due to the trade conflicts after the introduction of the new tariffs. They are looking at India as one of their centres to move their manufacturing setups as the country is coming out as one of the hubs for manufacturing for Apple. The smartphone brand is looking to source the majority of its supply in the US for June quarter from India.
The Taiwanese giant is not only looking at India to move its supply chain but the other part of their investment is on a company based in the US, Project ETA (DE) LLC. The US-based company will receive $735 million investment and will be focusing on manufacturing data centre equipment and assembling servers.
The recent rise in the investments made by Foxconn in India came along with Apple’s initiative to manufacture around 60 million smartphones in India. It was recently confirmed by the Indian Government that around 15% of global iPhones are manufactured in India.
