Foxconn Group’s Bharat FIH has decided to shut down Bharat Taiwan Corporation, a subsidiary launched three years ago to focus on R&D and supply chain services, as it grapples with declining revenues and lack of new orders. In its latest filing, the company’s board approved the closure, citing the need to streamline operations and cut costs amid a prolonged revenue decline.
Established in 2021 alongside Rising Stars Hi-Tech, Bharat Taiwan Corporation was part of Bharat FIH’s strategy to drive innovation and expand capabilities in research and product development. However, the company is now consolidating operations, marking the first public acknowledgment of its financial challenges.
The slowdown stems from reduced orders from Xiaomi, its largest client, amid increased government scrutiny of Chinese firms in India. Xiaomi accounted for 96% of Bharat FIH’s revenue in 2021, exposing the company to high client dependency risks, as noted in its scrapped ₹5,000 crore IPO draft prospectus.
Bharat FIH, a leading player in the electronics manufacturing services (EMS) sector, operates facilities in Andhra Pradesh and Tamil Nadu, employing over 25,000 workers, 90% of whom are women. Reports suggest the company may also shut down its Sri City plant due to plummeting orders.
While Bharat FIH had previously announced plans to diversify into high-growth sectors like EVs, televisions, and hearables, it has yet to specify a timeline for these ventures. The company has also faced leadership departures, including its former MD Josh Foulger and three independent directors, as it works to navigate its ongoing challenges.
Bharat FIH, a key subsidiary of FIH Mobile Limited and a part of the Foxconn Technology Group, is one of India’s leading providers of electronics manufacturing services (EMS). Renowned for its expertise in mobile handset and consumer electronics production, Bharat FIH plays a significant role in supporting global and domestic brands with end-to-end manufacturing solutions, including design, assembly, and supply chain management.
With state-of-the-art facilities and a commitment to technological innovation, the company is at the forefront of India’s “Make in India” initiative, contributing to the growth of the electronics manufacturing sector. Bharat FIH continues to expand its capabilities, focusing on sustainable practices and aligning with emerging opportunities in electronics and technology-driven markets.
