Amid Foxconn's accelerating investments in India, supply chain insiders believe that as China-based and India-based contract manufacturers face respective challenges, only Foxconn can expand its production capacity in India to meet customer demands.
According to the latest corporate filings, Foxconn Singapore Pte increased its capital in Foxconn's Indian subsidiary, Foxconn Hon Hai Technology India Mega Development Private Limited, with an investment of US$1.541 billion. Besides, the Indian subsidiary announced the expansion of manufacturing facilities in India, with an investment of NTD50 billion (US$1).59 billion), which Foxconn said is for operation needs.
The corporate filings follow earlier announcements by Foxconn that it would acquire land in Bangalore and has been receiving capital equipment from Apple Operations Limited since July 2022, with a transaction value of US$33.27 million, highlighting Foxconn's expansion in India in response to customers' needs.
Sources told DIGITIMES that Foxconn's advantage lies in its accumulated supply chain management and manufacturing experiences. With customers having high expectations for India's potential and India's recent policies to encourage a local supply chain, it would not be surprising for Foxconn, a major manufacturing partner for many brands and suppliers, to invest in India.
In the meantime, India-based contract manufacturers, with limited scale and experience, have yet to gain customers' trust as China-based contract manufacturers focus on expansion in their home turf amid the macro environment. This leaves Foxconn as the sole choice for customers to expand their supplier base in India.
Given India's growth potential, industry insiders believe that Foxconn's recent investments target singular products and India's contribution to Foxconn's revenue, which is expected to rise with the Indian market.
