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Apple iPhone maker Foxconn to invest $1.5 bn in India

Foxconn is the main assembler of Apple iPhones and both companies are keen to move away from China and create alternative supply chains…reports Asian Lite News

Taiwanese contract manufacturer Foxconn plans to invest $1.54 billion in India, as the country doubles down on local manufacturing. In a stock exchange filing, Foxconn said that the investment will help it fulfil “operational needs.”

The company, however, did not provide further details. Foxconn is the main assembler of Apple iPhones and both companies are keen to move away from China and create alternative supply chains.

Foxconn already has an iPhone factory in Tamil Nadu, which employs 40,000 people and has signed an agreement to invest Rs 1,600 crore in a new electronics components unit in the state that will create 6,000 jobs.

The company has also announced that it will be investing an additional Rs 3,300 crore in its manufacturing facility in Telangana. This will take the total investment of the company in the state to more than Rs 4,550 crore.

In September, Union IT Minister Ashwini Vaishnaw said the government was “fully committed” to support Taiwanese electronics giant Foxconn’s ambitious plans to double its manufacturing capacity in the country.

“Fully committed to support and facilitate,” Vaishnaw said on X in response to Foxconn India representative V Lee’s LinkedIn post to mark Prime Minister Narendra Modi’s 73rd birthday in which he said the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India” by this time next year.

Foxconn chairman Young Liu had visited India recently to attend the ‘SemiconIndia 2023’ event hosted for global semiconductor companies that was inaugurated by PM Modi in Gandhinagar.

Speaking at the event, the Foxconn chairman said, “I can feel the determination of the Indian government. I am very optimistic about where it’s headed.”

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Foxconn to Double Its Manufacturing Capacity in India

Foxconn Industrial Park. (Xinhua/IANS)

The upcoming unit, being set up by Foxconn Interconnect Technology Ltd (FIT), will manufacture Apple accessories and is located at Kongara Kalan on the outskirts of Hyderabad…reports Asian Lite News

Minister for Electronics & Information Technology Ashwini Vaishnaw on Monday said the government was “fully committed” to support Taiwanese electronics giant Foxconn’s ambitious plans to double its manufacturing capacity in India.

Foxconn, the world’s largest contract manufacturer of electronics, is looking at India to set up an alternative supply chain outside China.  

“Fully committed to support and facilitate,” Vaishnaw said on X in response to Foxconn India representative V Lee’s LinkedIn post to mark Prime Minister Narendra Modi’s 73rd birthday in which he said the company was “aiming for another doubling of employment, FDI (foreign direct investment), and business size in India”  by this time next year.

Foxconn is the main assembler of Apple iPhones and both companies are keen to move away from China and create alternative supply chains. 

The Communist giant stands alienated due to its military muscle-flexing in the South China Sea and dubious role in the spread of the Covid-19 pandemic that destroyed lives and livelihoods across the world.

Foxconn already has an iPhone factory in Tamil Nadu, which employs 40,000 people and has signed an agreement to invest Rs 1,600 crore in a new electronics components unit in the state that will create 6,000 jobs.

The company has also announced that it will be investing an additional Rs 3,300 crore in its manufacturing facility in Telangana. This will take the total investment of the company in the state to more than Rs 4,550 crore.

The upcoming unit, being set up by Foxconn Interconnect Technology Ltd (FIT), will manufacture Apple accessories and is located at Kongara Kalan on the outskirts of Hyderabad.

Besides, the company had also announced in August that it would invest Rs.5,000 crore ($600 million) in Karnataka for two projects in the state to make casing components for iPhones and for chip-making equipment.

Foxconn chairman Young Liu had visited India recently to attend the SemiconIndia 2023 event hosted for global semiconductor companies that was inaugurated by Narendra Modi in Gandhinagar recently.

Speaking at the event, the Foxconn chairman said, “I can feel the determination of the Indian government. I am very optimistic about where it’s headed.”

He highlighted the Buffalo Spirit of the Taiwan semiconductor industry, which is the ability to work hard without complaining and said that the same spirit could be applied to India.

ALSO READ-Foxconn Plans To Double Investment In India

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Foxconn’s Terry Gou Joins Taiwan Presidential Election Race

The 2023 Mother Teresa International Award

Founded in 1974, Foxconn grew to become an international business empire, becoming the largest private employer and exporter in mainland China with a workforce of 1.2 million…reports Asian Lite News

 iPhone maker Foxconn’s founder Terry Gou on Monday announced an independent bid for the Taiwan presidential election in January 2024.

The 72-year-old tech billionaire is now the fourth candidate for the top position, reports Nikkei Asia.

He is pitted against Vice President Lai Ching-te of the ruling Democratic Progressive Party (DPP), Taiwan People’s Party Chairman Ko Wen-je, and New Taipei Mayor Hou Yu-ih of the China-friendly Kuomintang (KMT).

Gou said at a press conference he will “make Taiwan overtake Singapore within 20 years” and have the highest GDP per capita in Asia.

“If Singapore can do it, so can Taiwan. We need to pull the country back to the path of peace and prosperity through this election. Only by doing so can hundreds of industries safely develop and can people live and work in peace and contentment,” Gou was quoted as saying.

“Taiwan should absolutely not become Ukraine. I shall never let Taiwan be the next Ukraine,” said Gou.

“I can guarantee that I’ll bring 50 years of peace to the Taiwan Strait.”

Gou needs sufficient nominations to officially become a presidential candidate in November.

Founded in 1974, Foxconn grew to become an international business empire, becoming the largest private employer and exporter in mainland China with a workforce of 1.2 million.

As of 2022, Gou had a net worth of $6.8 billion.

In 2019, Gou resigned from Foxconn and joined the Kuomintang (KMT) to run for President. Once described as an “old friend” by Chinese President Xi Jinping, Gou has been characterised as friendly to Chinese business interests during his political and business career.

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Foxconn plans industrial parks in India

The iPhone maker will also deploy more resources in Karnataka, Telangana and other states…reports Asian Lite News

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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Foxconn to expand investments in TN

The Foxconn team led by the Group Chairman Young Liu had met Stalin…reports Asian Lite News

Taiwanese electronics major Hon Hai Technology Group or Foxconn will be setting up a mobile phone component manufacturing facility in Tamil Nadu’s Kancheepuram district at an outlay of Rs 1,600 crore.

An agreement to this effect was signed between Foxconn and Tamil Nadu government’s Guidance Bureau in the presence of Chief Minister M.K. Stalin.

The Foxconn team led by the Group Chairman Young Liu had met Stalin here.

“Was delighted to meet the Foxconn Group Chairman Young Liu and his team. Various investment opportunities in Tamil Nadu were discussed. Investment commitment to establish a mobile component manufacturing facility in Kancheepuram district for Rs 1,600 crore with a potential employment for 6,000 persons was signed in my presence,” Stalin tweeted.

“We also discussed further investments in EV (electric vehicle) and electronic components. Another milestone in our ambition to make TN the new emerging electronics manufacturing hub of Asia!” Stalin said.

According to Industries Minister T.R.B. Rajaa, the Taiwanese group’s repeated investments and expansion plans in Tamil Nadu is a testament of Tamil Nadu being the top choice for manufacturing in India for major companies across the world.

“Manufacturers who have seen immense success in Tamil Nadu over the past many years know that by investing more in the state they will only gain more,” Rajaa tweeted.

“With this proposed investment, and many more to come, Tamil Nadu is poised to not only remain the top electronics exporter in the country, but also significantly increase its electronics exports in the coming years,” Rajaa added.

Currently Foxconn has a facility near here to assemble iPhone for Apple.

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What led to Foxconn-Vedanta deal collapse

The Gujarat government has partnered with Vedanta and Foxconn aiming an investment of Rs 1.54 lakh crore to achieve self-reliance in the field of semi-conductor manufacturing

Foxconn stated that it had worked with Vedanta for more than a year, but they had mutually decided to end the joint venture…reports Asian Lite News

Why did the storied Foxconn-Vedanta deal come a cropper? Why has the $19.5 billion investment fallen through in a strange sort of anti-climax? Vedanta and Foxconn had got on board STMicro for licensing technology, but the government had made it clear that it wanted the European chipmaker to have “more skin in the game”, which translates into a stake in the partnership.

For Vedanta to pony up, it required to find a suitable boy, i.e., the right technical partner for 20-28 nm size chips, in time, and Foxconn eventually pulled out (the “most advanced” chips are around 5 nm). 

Foxconn stated that it had worked with Vedanta for more than a year to bring “a great semiconductor idea to reality”, but they had mutually decided to end the joint venture and it will remove its name from an entity that is now fully-owned by Vedanta. 

Vedanta, on its part, said that it reiterates that it is fully committed to its semiconductor fab project and “we have lined up other partners to set up India’s first foundry. We will continue to grow our semiconductor team, and we have the licence for production-grade technology for 40 nm from a prominent Integrated Device Manufacturer (IDM). We will shortly acquire a licence for production-grade 28 nm as well”.

Vedanta has redoubled its efforts to fulfil the Prime Minister’s vision for semiconductors and India remains pivotal in repositioning global semiconductor supply chains. Which sounds like a marriage gone sour.

Sources close to developments also revealed that concerns about incentive approval delays by the Union government had contributed to Foxconn’s decision to pull out of the venture. The government had raised posers on the costing provided to request incentives from the government. The government has also decided to keep open the $10 billion financial incentive scheme with a 50 per cent subsidy on investments for making semiconductors in India for potential applicants. 

From the government side – “It was well known that both companies had no prior semiconductor experience or technology and were expected to source technology from a partner”, Union minister Rajeev Chandrasekhar tweeted.

Vedanta and Foxconn had signed agreements in September 2022 to invest $19.5 billion to set up semiconductor and display production plants in Gujarat.

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Apple supplier Foxconn leases new site in Vietnam

Foxconn is also planning to increase its workforce at its plant in India over the next two years….reports Asian Lite News

Apples biggest supplier Foxconn has secured a new site in Vietnam, as the Taiwanese giant shifts production away from China after facing major supply-chain disruptions late last year after the lifting of zero-Covid policy.

According to South China Morning Post, Taiwan-based Foxconn (earlier known as Hon Hai Precision Industry) has signed a lease with Saigon-Bac Giang Industrial Park Corp to occupy a plot of 45 hectares for around $62.5 million to meet “operational needs and expand production capacity”.

In an exchange filing, the Taiwanese giant said the lease will run through February 2057.

“Foxconn signed a $300 million agreement with a Vietnamese developer last August to build a new factory in Bac Giang, where it already produces iPads and AirPods,” according to the report.

Foxconn is also planning to increase its workforce at its plant in India over the next two years.

The company announced a $500 million investment in its Indian subsidiary in December last year.

Apple CEO Tim Cook, in the company’s quarterly earnings call earlier this month, said that the Covid-19 challenges “significantly impacted the supply of iPhone 14 Pro and iPhone 14 Pro Max and lasted through most of December”.

Meanwhile, the key Apple supplier reported strong revenue for January that surged 48.2 per cent (year-on-year), after facing significant Covid-related disruptions in October and November in 2022.

“With operations returning to normal and product shipments increasing at the Zhengzhou campus, revenue in January delivered strong double-digit growth both on MoM and YoY basis,” said Foxconn.

The company reported better components supply and strong customers’ pull-in. Smart consumer electronics products and computing products showed strong double-digit growth.

Foxconn’s biggest iPhone manufacturing facility in China, hit hard by Covid-related disruptions, gradually recovered and production reached about 90 per cent of maximum capacity in early January.

Foxconn Technology Group’s facility in the central Chinese city of Zhengzhou is the world’s largest iPhone factory, which saw major disruptions in the last three months of 2022 caused by the pandemic controls.

In a New Year’s message, Foxconn Chairman and CEO Young Liu had said the Taipei-based company may see a more difficult and challenging path ahead.

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