Foxconn plans to invest 'several billions' in India
What's the story
Foxconn's strategic pivot to India exemplifies the "China plus one" strategy, which aims to diversify supply chains beyond China. On Monday, Foxconn chairman Young Liu said the contract manufacturer is expected to invest "several billions" in India. The company aims to expand the production capacity for making key components for consumer electronics and some electric vehicle components.
Details
India accounted for 4.6% of Foxconn's revenue
Last year, India accounted for $10 billion, or 4.6%, of Foxconn's revenue. The Taiwanese company currently has nine campuses in India with over 30 factories and around 20 dormitories. Foxconn has a presence in Karnataka, Telangana, and Tamil Nadu. It plans to invest more in these states, Liu said. The company believes it can make EVs and semiconductors in India at some point.
What Next?
Foxconn is still cautious in its approach toward India
According to Financial Times, there are still limitations to Foxconn's ambitions in India. Company executives dismiss the notion that India could become an alternative to China. Internally, there are doubts about building a supply chain in India that could satisfy global demand. A person close to Foxconn told Financial Times that it is hard to get subsidies in India.