The Foxconn technology group has received permission to allocate at least another $1 billion in investment funds for a project to build a factory in India, where production activities for the assembly of Apple products will be established.
For the mentioned firm, the possibility of additional financing is an important step toward achieving the goal of creating a powerful manufacturing center outside China. Currently, many companies are seeking to reduce the degree of interaction with Beijing in the business space against the background of Washington’s action, which has limited the access of brands from this Asian country to advanced chips and equipment for its making and demonstrates the intention to continue to take similar measures in the technology industry.
Foxconn is currently the world’s largest manufacturer of Apple smartphones. The company has already allocated $1.6 billion in investment funds for the construction of a production facility on a 300-acre site near Bangalore Airport. The relevant information was published by the media with reference to insiders. Additional investment funds will allow the Taiwanese manufacturer to increase the capacity for assembling Apple devices. This information was also published by the media with reference to insiders who used the right of anonymity, citing the fact that this issue is confidential.
In total, the Taiwanese manufacturer is investing approximately $2.7 billion to build a new plant, which is expected to become the centerpiece of its production network in India.
The media note that these expenses are an example of Foxconn and other companies of the same profile being interested in establishing activities outside China, which, in addition to the above-mentioned restrictions from Washington, also faced problems with the economy, which demonstrates an insufficient level of growth and in its current state does not contain signs of improvement shortly. Beijing is making efforts to get out of the negative situation, but it is too early to assess the effectiveness of these actions.
Foxconn has increased its budget for business expansion in India at least once this year. Initially, the company, which is Apple’s most important manufacturing partner, planned to invest $ 700 million in its complex located in the southern technology center of state Karnataka.
The media reports that Foxconn may not direct all investment resources to the construction of a new plant for making devices the American technology giant. There are suggestions that the company will allocate part of the financing for joint projects with other partners. The media also released information about the likelihood that Foxconn will invest in a plant producing components such as spare parts for electric cars.
The Karnataka government last Tuesday, December 12, approved more than $1 billion in funding from Foxconn for the state. No details were provided in this case.
Back in the spring of this year, the media suggested that the Taiwanese manufacturer could use Indian production facilities as part of its nascent business of making electric vehicles.
Representatives of Foxconn and Apple did not respond to media inquiries about additional investments.
The partners of the American technology giant are currently stepping up efforts to form a supply chain in India. At the same time, Chinese companies are stopping business in this country amid tensions between Beijing and New Delhi. The control of local regulators over the activities of Xiaomi Corp. and Vivo, which turned out to be excessive, was perceived by many firms from China as a signal of the undesirability of activities in India.
Indian conglomerate Tata, which is also an Apple partner, plans to build one of the largest iPhone assembly plants in the Indian state of Tamil Nadu.
As we have reported earlier, Foxconn Reports Rise in November Revenue.