In a concerted effort to bolster domestic manufacturing, Taiwanese electronics giant Foxconn has announced a significant investment of $1.54 billion in India. This move aligns with the country's strategic approach to establishing robust manufacturing capabilities within its borders.
Through an official stock exchange filing, Foxconn revealed that this investment will be utilized to fulfill "operational needs." While specific details regarding the allocation of funds remain undisclosed, this move signals Foxconn's commitment to expanding its manufacturing presence in India.
As a leading manufacturer of Apple iPhones, both Foxconn and Apple are actively seeking alternatives to their current reliance on Chinese manufacturing. India, with its burgeoning manufacturing sector and skilled workforce, presents an attractive alternative.
Foxconn already operates an iPhone manufacturing facility in Tamil Nadu, employing over 40,000 individuals. Additionally, the company has pledged an investment of Rs 1,600 crore to establish a new electronics components unit in the state, creating 6,000 new jobs.
Further solidifying its commitment to India's manufacturing landscape, Foxconn has announced an additional investment of Rs 3,300 crore in its Telangana manufacturing facility. This infusion of capital will elevate the company's total investment in the state to over Rs 4,550 crore.
Echoing the government's unwavering support for Foxconn's ambitious expansion plans, Union IT Minister Ashwini Vaishnaw pledged full backing for the company's endeavors. He expressed the government's commitment to "support and facilitate" Foxconn's growth trajectory.
This unwavering support stems from Foxconn's shared vision of doubling its manufacturing capacity in India. In a LinkedIn post commemorating Prime Minister Narendra Modi's 73rd birthday, Foxconn India representative V Lee affirmed the company's aspiration to achieve "another doubling of employment, FDI (foreign direct investment), and business size in India" by the same time next year.
Foxconn chairman Young Liu's recent visit to India, where he attended the 'SemiconIndia 2023' event, further underscores the company's deepening ties with the nation. During the event, Liu expressed his admiration for the Indian government's determination and optimism about the country's future.
Foxconn's substantial investment in India's manufacturing sector marks a significant milestone in the country's pursuit of self-sufficiency in electronics production. This strategic partnership is poised to propel India towards becoming a global manufacturing hub.
(With agency inputs)
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