iPhone-maker Foxconn to spend Rs 1,200 crore to build new factory in India
The company Foxconn claimed that they are investing this money for ‘operational needs’ and it will be used to build a factory on a land the company owns
Taiwanese company Foxconn announced on Tuesday that it will spend Rs 1200 crore to build a new factory in India. This factory will be built on land that the company already owns.
The information about the biggest iPhone-maker in India was revealed via a regulatory filing. The company claimed that they are investing this money for ‘operational needs.’ This means they need to spend this money to keep their business running smoothly.
Last year, multiple reports claims that that Foxconn was planning to invest more than $1.5 billion in a construction project in India. This project was also for the company’s “operational needs”. The money for this project was given by a part of Foxconn called Hon Hai Technology India Mega Development.
Foxconn has been quickly growing its business in India. Just last month, Foxconn said it would spend $37.2 million to work with HCL Group. Together, they will create a facility in India where chips can be packaged and tested. This news came after a planned partnership with the Vedanta Group did not work out.
The announcement, made in an exchange filing in Taiwan late Monday, didn’t give any further details, saying only that the investment was for “operational needs.” A spokesperson for the company declined to say where the new facilities would be or what they would build.
About half of Foxconn’s revenue comes from business with Apple Inc. The company has been making iPhones and other products in India for several years, including the latest iPhone 15. In September, a Foxconn representative in India said on LinkedIn that the Taiwanese company plans to double the size of its business in the South Asian country.
India’s Karnataka state government in August announced that Foxconn planned to invest $600 million on two component factories in the southern Indian state. That included a plant that will make mechanical enclosures for iPhones and a semiconductor equipment manufacturing plant it will operate with Applied Materials Inc, the government said at the time.
Those two projects are on top of a $700 million facility Foxconn aims to build on a 300-acre (121 hectares) site close to the airport in Bengaluru, the capital of Karnataka, Bloomberg News previously reported. That plant is likely to assemble iPhones.
It was not immediately clear if the latest investment announcement is to cover those projects or additional ones.
Foxconn already operates nine production campuses and more than 30 factories employing tens of thousands of people in India, where it takes in around $10 billion of revenue annually.
With Thanks Reference to: https://www.businesstoday.in/technology/news/story/iphone-maker-foxconn-to-spend-rs-1200-crore-to-build-new-factory-in-india-416472-2024-02-07 and https://www.livemint.com/technology/tech-news/iphone-maker-foxconn-plans-to-expand-footprint-in-india-with-1-6-bn-investment-11701089848206.html
