Foxconn Signs Deal to Invest $5 Billion on New Manufacturing Facility in India

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Posted August 8, 2015 at 4:19pm by iClarified

Foxconn has signed a deal with India's Maharashtra state to invest $ billion over five years on a new electronics manufacturing facility, reports Re/code.

The announcement was made by Foxconn founder Terry Gou and Maharashtra Chief Minister Devendra Fadnavis after the signing of an accord in the state capital Mumbai. The Foxconn announcement will bolster Indian Prime Minister Narendra Modi’s “Make in India” campaign, which aims to turn Asia’s third-largest economy into a manufacturing powerhouse.

Gou didn't say whether the company would make mobile phones at the facility; however, a recent Reuters report claimed that facility would be used for iPhone assembly.

India could help Foxconn mitigate accelerating wage inflation in China, where it makes the majority of iPhones, and base production sites closer to markets where its key clients want to grow. Lower production costs could also help Foxconn keep hold of Apple orders amid intensifying competition with nimble manufacturing rivals such as Quanta Computer Inc.

Notably, Gou said that he was looking to set up 10-12 facilities in various Indian states including factories and data centers by 2020.

Chief Minister Fadnavis said the Foxconn plant would employ about 50,000 people.

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Foxconn Signs Deal to Invest $5 Billion on New Manufacturing Facility in India

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Mang Domeng - August 9, 2015 at 7:12am

Another Made in China part 2.

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Sumit Agah - August 17, 2015 at 6:14am

Foxconn considers Mumbai the capital for its next IT hub, and in fact with time it plans to establish one centre in each state, says Terry Gou, Chairman of Foxconn. To make true Make in India, Skill India and Digital India, Foxconn will invest USD 5 billion over 5 years, says Gou. In the first three years, it will focus on Make in India and Skill India, he adds. Speaking exclusively to CNBC-TV18, Gou says the company will hire employees based out of India as he considers India pool of IT talent and will establish an exchange programme for the same. Gou mentions the company is in talks with Adani Power for Solar-power (project) tie-ups. Other prospective tie-ups include start-up companies like Snapdeal and Micromax, he adds. Foxconn will be a key supplier of components like speakers, batteries and various other electronics, he says, adding, the company would also deal with media content generation and product designing, apart from electronic manufacturing.

justabrake - August 8, 2015 at 4:55pm

Will it bring down the cost of any phone ! No .... No matter if they could print them out the cost to the consumer will always go up ! Phone prices should be dropping but it will never as long as the stupid consumers keep upgrading every year !