Hon Hai Technology Group (Foxconn) said on Monday it will plan to establish industrial parks and optimise the business environment in India in terms of infrastructure, policies and laws.
Foxconn Chairman Young Liu said that since they entered India in 2005, its revenue, number of employees, and investment scale have grown exponentially.
“At present, it is mainly engaged in the ICT final assembly business. Going forward, Hon Hai will actively deploy work in the area of key components to raise its competitiveness in India,” Liu said, as the company announced its second quarter 2023 financial results.
In addition to existing operations in the Andhra Pradesh and Tamil Nadu, the iPhone maker will also deploy more resources in Karnataka, Telangana and other states.
“Through close cooperation with central and local governments, Hon Hai will plan to establish industrial parks and optimise the business environment in terms of infrastructure, policies and laws,” Liu added.
Earlier this month, the Karnataka government and Foxconn signed a Letter of Intent (LOI) with an estimated investment outlay of Rs 5,000 crore generating 13,000 jobs.
These projects are in addition to the iPhone end assembly plant which the Taiwanese company has planned to set up at Devanahalli ITIR in the outskirts of Bengaluru with an investment of about Rs 14,000 crore.
Last month, the Taiwanese electronics major said it will set up a mobile phone component manufacturing facility in Tamil Nadu's Kancheepuram district at an outlay of Rs 1,600 crore.
Currently Foxconn has a facility near Chennai to assemble iPhone for Apple. Hon Hai said it will continue to implement the BOL (build-operate-localise) strategy in Southeast Asia, including in Vietnam, Thailand and Indonesia, to assist local partners to improve the supply chain and enhance indigenous competitiveness.
“We will also actively share global resources with these partners to expand the local market and share in the achievements,” the company added.
Hon Hai reported net income of NT$33 billion ($1 billion) and its operating profit missed estimates.
The company expects sales to fall this year, after previously forecasting flat revenue.
In terms of technology, Chairman Liu said that the company’s ability to provide one-stop integrated services in the AI server industry lies in its continuous investment in research and development of key technologies, especially in energy consumption and heat dissipation technologies.
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