Foxconn Secures Taiwan Approval for the US investment in India

Taiwanese tech giant Hon Hai Precision Industry Co., better known as Foxconn, was granted regulatory approval by Taiwan's Ministry of Economic Affairs (MOEA) for two massive foreign investments worth over US dollar 2.2 billion, reports published Wednesday stated.

MOEA's Investment Review Department gave the nod to Foxconn's  US dollar 1.49 billion investment proposal to add more funds to its subsidiary company, Foxconn Singapore Pte Ltd. The investment would then be channeled into Yuzhan Technology (India) Pvt Ltd, a Foxconn group Indian subsidiary. The action is a sign of Foxconn's ongoing attempt to broaden its presence in India, a strategic hub as part of Apple's bid to diversify from China.

• Foxconn received Taiwan’s approval for $2.2B in foreign investments
• A new $1.48B Foxconn plant is underway in Sriperumbudur, Tamil Nadu
• Foxconn to invest $735M in a new U.S. unit for data center and server assembly

Foxconn had only invested US dollar 1.48 billion (around Rs. 12,800 crore) in India a month ago. Foxconn is scheduled to set up a massive manufacturing plant in Sriperumbudur, Tamil Nadu. Foxconn's plant will be focused on the production of smartphone display modules and strengthen Apple's locally available component supply chain.

In addition to its investments directed at India, Foxconn also received the green light to invest US dollar 735 million in establishing a new U.S.-based facility named Project ETA (DE) LLC. The company will be involved in producing data center modules and server assembly, when the world is witnessing a rising demand for cloud infrastructure and enterprise technology services.

Also Read: Foxconn to Make iPhone Parts in Tamil Nadu as Apple Grows in India

The previous invesments in India when Apple attempts to shift production away from China in order to reduce geopolitical and tariff concerns, Foxconn, the company that makes iPhones, is investing $1.5 billion to increase its focus on India.

These strategic investments are indicative of Foxconn's commitment to expand its global manufacturing capacity aggressively and solidify its footprint in two large markets, the United States and India. Both are part of general trends in supply chain decentralization and geopolitical risk hedging.