Foxconn, the Taiwanese electronics organization, is set to make a substantial investment in India as they have submitted an application to establish a semiconductor facility in Karnataka state. According to India’s Minister of State for Electronics and IT, Rajeev Chandrasekhar, the application is made under the “modified scheme for setting up of semiconductor fabs in India,” part of India’s initiative to enhance its domestic semiconductor industry.
This move by Foxconn is part of its broader strategy to diversify its operations and reduce reliance on Chinese manufacturing, especially as Apple, its key customer, faces pressure from the US government to distance itself from Beijing. Foxconn, responsible for assembling around 70% of iPhones, serves as Apple’s largest contract manufacturer. In recent months, Foxconn has demonstrated a commitment to expanding its manufacturing activities in India. In early December, the company revealed plans to invest over $1.5 billion in an Indian construction project through its local subsidiary, Hon Hai Technology India Mega Development. This comes in addition to the previous announcements of two other significant projects in India, including a $600 million initiative in Karnataka state and a $500 million factory in Telangana state.
It is indeed worth noting that Foxconn has faced challenges in some of its Indian ventures. Notably, the company withdrew from a $19.5 billion chipmaking joint venture with Indian mining giant Vedanta during the summer, signaling that not all of its projects have progressed as initially anticipated. Nevertheless, Foxconn’s move to establish a semiconductor facility aligns with India’s strategic goal of building a robust semiconductor industry domestically. As global demand for semiconductors continues to rise, such investments can position India as a key player in this critical industry.
This proposed investment from Foxconn adds to the series of commitments made by major tech companies to bolster manufacturing capabilities within India. The country’s favorable policies, coupled with the ongoing geopolitical shifts, make it an attractive destination for companies seeking to diversify their production bases.
