Taiwan has once again given a big blow to China. Taiwanese company Hon Hai, also known as Foxconn, is planning to invest 1.6 billion dollars i.e. more than Rs 13 thousand crore in India. This investment will be in construction projects. The announcement, made in an exchange filing in Taiwan late Monday, provided no further details. It only said the investment was being made to meet operational needs. A company spokesperson declined to say where the new facilities would be and what they would build.
Half of Foxconn's revenue comes from Apple.
This news has come at a time when Hon Hai i.e. Foxconn and other Taiwanese companies are working to expand their business outside China due to increasing tension between the US and China. About half of Foxconn's revenue comes from business with Apple Inc. The company has been manufacturing iPhone and other products in India for many years. Which also includes iPhone 15. In September, a Foxconn representative in India said on LinkedIn that the Taiwanese company was planning to double the size of its business in India.
Many factories are running
The Indian state government of Karnataka announced in August that Foxconn planned to invest $600 million on two component factories in the southern Indian state. This includes a plant that will make mechanical components for iPhones and a semiconductor equipment manufacturing plant that will operate with Applied Materials Inc. Foxconn already operates 9 production campuses and more than 30 factories in India, employing thousands of people. In these, revenue of about 10 billion dollars is generated every year.
India benefits from US-China tension
At present, there is a lot of tension between the US and China. India has started getting the benefits of this. This is the reason why Apple has started consolidating its business from China. Has started shifting his business to India. At the same time, Taiwan is also very troubled by China. This is the reason why many Taiwanese companies are leaving China and moving towards India for semiconductor plants. If the pace continues like this, India will soon become the world's largest factory. Which once used to be China.
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