Hon Hai, also known as Foxconn, which made its foray into India in 2005 and has embarked on manufacturing in the country, is optimistic about India developing as the world’s manufacturing hub. Young Liu, Chairman of Hon Hai Technologies, said, “If there are no major changes in the future, India will become a new manufacturing centre in the world.” He added that Taiwan would be India’s most trusted and reliable partner.
He added: “The supply chain ecosystem that took more than 30 years to build in China will take time to transfer to India, but fortunately, we already have experience in this area, and it is expected that the time will be relatively shorter. There are huge opportunities for the local electronics industry to develop.”
Liu also acknowledged that Foxconn is continuing to expand its presence in India in response to customer needs.
Foxconn’s current activities primarily revolve around Information and Communication Technology (ICT) final assembly in the country, but the company is poised to take a proactive approach in the realm of essential components to bolster its competitive edge in India. Chairman Liu shared details stating “our key components in India will first and foremost, be to do with consumer electronics. However, next year, there will also be EV key components in India. As for whether key components will happen this year, I believe that shipments may have to wait until next year. Nevertheless, relevant construction has been ongoing this year. So, this will be for next year.” The company will have investments in key components in Karnataka and Tamil Nadu, and Telangana.
During the recent quarterly earnings call, Liu said: “In India, Foxconn presently operates about nine campuses. The total size will be the equivalent of more than 500 football fields. We have over 30 factories in India that turn over a business size of roughly about $10 billion annually. And we have over 20 dormitories that shelter and safety of 1000s of employees who worked at Foxconn in India.” And as India now accounts for $10 billions of Foxconn’s annual revenue. Given India's potential market size, and if Foxconn can fully implement its plans, the investment of several billion dollars in India will only be the beginning.