Foxconn's Bold Bet, Doubling Workforce and Investment in India
Foxconn's Big Vision for India, Doubling Employment and FDI
18 September 2023
Foxconn, Apple's supplier, plans to double its workforce and investment in India within the next year, aligning with its strategy to diversify away from China.
The company's representative in India, V Lee, announced this ambitious goal on LinkedIn during Indian Prime Minister Narendra Modi's 73rd birthday, aiming for a substantial increase in employment, foreign direct investment (FDI), and business size in India.
Foxconn has already set up an iPhone manufacturing facility in Tamil Nadu, employing 40,000 people.
In a promising move for India's growing tech manufacturing sector, Apple's supplier, Foxconn, is set to double its workforce and investment in the country by the next year, according to a company executive. Foxconn, the world's largest contract manufacturer of electronics, has been rapidly expanding its presence in India, strategically investing in manufacturing facilities in the southern regions. This expansion comes as part of the company's broader strategy to diversify its operations away from China.
V Lee, Foxconn's representative in India, made the announcement on LinkedIn, coinciding with Indian Prime Minister Narendra Modi's 73rd birthday. Lee expressed the company's ambitious goals, stating they are "aiming for another doubling of employment, FDI (foreign direct investment), and business size in India" without providing specific details.
Foxconn has already established an iPhone manufacturing factory in the state of Tamil Nadu, which currently employs a staggering 40,000 people, contributing significantly to India's employment landscape.
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In a notable development in August, the state of Karnataka disclosed that Foxconn would invest $600 million in two projects. One project involves the production of casing components for iPhones, which will generate 12,000 jobs. The other project will see Foxconn collaborating with Applied Materials in a $250 million venture to manufacture chip-making equipment. Additionally, Foxconn is planning to invest approximately Rs. 1,600 crore (equivalent to $194.45 million) to construct a campus in Kancheepuram district, near the capital of Tamil Nadu, Chennai.
Foxconn's Chairman, Liu Young-way, has expressed a strong belief in India's potential. He stated, "several billion dollars in investment is only a beginning." This sentiment reflects the company's eagerness to tap into India's burgeoning tech market, particularly in light of the ongoing global economic challenges.
Despite the company's optimistic outlook, Foxconn did report a 1 percent drop in second-quarter net profit. This decline was attributed to the adverse impact of global economic uncertainties on consumer demand for smart electronics. Specifically, the company's net profit for the April-June quarter dropped from TWD 33.29 billion to TWD 33 billion (equivalent to roughly Rs. 8,654 crore to Rs. 8,578 crore) compared to the same period the previous year.