Taiwan’s Foxconn, the world’s largest contract electronics maker, said on Thursday that its Singapore unit has acquired 4.08 million shares in Foxconn Hon Hai Technology India Mega Development Private Limited for $500 million (roughly Rs. 4,100 crore).
The announcement of a $500 million injection into its India unit comes after Reuters reported last month that Apple supplier Foxconn plans to quadruple the workforce at its iPhone factory in India over two years, with two government officials with knowledge of the matter pointing to a production adjustment as it faces disruptions in China.
Foxconn plans to boost the workforce at its plant in southern India to 70,000 by adding 53,000 more workers over the next two years, sources had said.
The company shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, according to a government source, while a person in Taiwan with knowledge of the matter said Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
Formally called Hon Hai Precision Industry, Foxconn opened the India plant in 2019 and has been ramping up production. It began producing the iPhone 14 this year.
Foxconn, which grabbed headlines in recent weeks for imposing tough COVID-19 restrictions at its Zhengzhou plant in China which resulted in worker unrest, said on Thursday the facility has lifted its “closed-loop” management curbs.
Last month, Apple’s Taiwanese contract manufacturer Pegatron reportedly began assembling the new iPhone 14 in India. Both Foxconn and Pegatron produce Apple’s latest iPhone 14 handset in India, the former began assembling the smartphone in September.
Cupertino, California-headquartered Apple has bet big on India since it began iPhone assembly in the country in 2017 via Wistron and later with Foxconn, in line with the Indian government’s push for local manufacturing.
JPMorgan analysts estimate Apple may make one out of four iPhones in India by 2025 as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country.
© Thomson Reuters 2022
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