Foxconn looking at long-term investments in India, says Terry Gou
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Foxconn, the world’s biggest contract manufacturer, said that it is making a long-term investment commitment to India, with plans to bring in the entire supply-chain ecosystem as it looks to go beyond product assembly.
Foxconn chairman Terry Gou said at a conference in Delhi that the company is looking to set up an electronics manufacturing ecosystem in the country over the next five to 10 years.
It will focus on manufacturing televisions, routers, switches, storage equipment and batteries among other things. The company said that India will also make for a good base to export products from given its close proximity to markets such as West Asia, Africa, South-East Asia and Pakistan.
“We are not in India only for assembling, but we want to be in the whole supply chain, key components and technology transfer,” said Gou.
The Taiwanese firm is keen to invest in areas including hardware and software integration, application software and testing, as well as high-tech projects such as smart power transmission, energy efficiency and key components for the Internet of Things.
“The company will be not only tapping India for Digital India and Make in India initiatives, but also to work with multinational companies, including Adani Enterprises Ltd,” said Gou.
The company is working closely with Adani Enterprises for energy efficiency and smart power transmission, as well as on data centres.
Gou also mentioned that Foxconn is working closely with multiple partners, such as handset manufacturers Micromax and Xiaomi, e-commerce marketplace Snapdeal and online refurbishing firm Greendust.
Gou said the company could invest more than $2 billion in setting up 10-12 facilities in states such as Andhra Pradesh, Maharashtra and Gujarat.
It is also looking to address logistics issues as well as supply chain, said Gou.
The company began its second leg of manufacturing in India in June by producing Xiaomi smartphones in Andhra Pradesh, after shutting down its Chennai factory in February.
Foxconn is evaluating plans to build several manufacturing facilities in India, including one in a tie-up with Japan’s SoftBank Corp., which is also one of the biggest investors in Chinese and Indian start-ups.
The Taiwan-based company is known for manufacturing Apple Inc.’s iPhones and iPads. It also makes Kindle e-book readers for Amazon.com Inc., besides devices and equipment for top technology companies such as Hewlett-Packard, Cisco and Dell.
In July, the Taiwanese firm said it was in a process of setting up an India-focused venture fund as a part of its initiative to invest and partner with start-ups and e-commerce companies here.