Foxconn bets big on South India as chairman Liu comes calling

iPhone manufacturer Foxconn’s business in India, where the Taiwanese firm has plowed in $1.4 billion, has surged to $10 billion, chairman Young Liu told the Press Trust of India on Sunday.

Liu made the statement on the sidelines of the launch of a women-only residential complex, near Foxconn’s plant in Sriperumbudur, that was inaugurated by Tamil Nadu chief minister M.K. Stalin.

“So far till last year we have done more than $10 billion in business size. We will do much more in this coming year,” Liu said, adding that the company is seeking to double down on its investments in southern India.

During the visit, Liu also outlined Foxconn plans to significantly expand its operations in India as part of a strategy to move beyond smartphone manufacturing and into sectors such as electric vehicles, energy, and digital health.

The company is also planning to develop townships integrated with its industrial parks to provide housing and amenities for its workers, replicating its successful models from Taiwan and China, Liu said.

Liu had arrived in India last Wednesday, and had met Prime Minister Narendra Modi in New Delhi to discuss Foxconn’s investments in India before heading for Karnataka, Telangana, and Tamil Nadu.

Wonderful to meet Mr. Young Liu, the Chairman of Hon Hai Technology Group (Foxconn). I highlighted the wonderful opportunities India offers in futuristic sectors. We also had excellent discussions on their investment plans in India in states like Karnataka, Tamil Nadu and Andhra… pic.twitter.com/5tT4xfF51u

— Narendra Modi (@narendramodi) August 14, 2024

“Wonderful to meet Mr. Young Liu, the Chairman of Hon Hai Technology Group (Foxconn). I highlighted the wonderful opportunities India offers in futuristic sectors. We also had excellent discussions on their investment plans in India in states like Karnataka, Tamil Nadu and Andhra Pradesh,” Modi posted on X.

Liu met Telangana chief minister A. Revanth Reddy in Delhi on Friday, when he stated that Hyderabad had the potential to expand in all sectors and that he would visit the city with his team in the near future.

“As part of a strategy to develop #Telangana into a manufacturing hub with global recognition, invited Foxconn, one of the world’s largest contract manufacturers in the electronics sector, to set up a new facility in the Future City being developed in Hyderabad,” Reddy posted on X.

Delighted to have met Chairman of Foxconn, Young Liu in New Delhi
& had fruitful discussions.

As part of a strategy to develop #Telangana into a manufacturing hub with global recognition,invited Foxconn, one of the world’s largest contract manufacturers in the electronics… pic.twitter.com/8duKG5c7NX

— Revanth Reddy (@revanth_anumula) August 16, 2024

Later the same day, Liu met Karnataka chief minister Siddaramaiah.

“Had a productive discussion with Mr. Young Liu, Chairman of Foxconn. Karnataka, with its rich cultural heritage and robust law and order, is well-positioned to create a synergy that will drive long-lasting growth and innovation,” Siddaramaiah posted on X.

“We are paving the way for a future where industries not only thrive but also contribute significantly to the state’s progress and prosperity. Looking forward to a fruitful collaboration that benefits all,” he added.

On Saturday, Liu called on Tamil Nadu chief minister M.K. Stalin.

“A special thanks to Mr. Young Liu for his support in Tamil Nadu’s pursuit of becoming a #OneTrillionDollarEconomy. We are committed to ensuring that Tamil Nadu meets all the needs for smooth and successful business operations,” the Tamil Nadu chief minister posted on X following the meeting.

The electronics contract manufacturer first set up a plant in Tamil Nadu in 2017 and has since expanded to 30 factories and nine production campuses across India.

In 2023, it began manufacturing the iPhone 15 in India and plans to produce 25% of its phones in the country by 2028.

Meanwhile, on Monday, a Foxconn delegation led by the company’s India representative V. Lee met Andhra Pradesh cabinet minister Nara Lokesh in Amaravati.

“I was delighted to meet a senior delegation of Foxconn led by Mr. V Lee at Amaravati today. I was happy to learn about Foxconn’s plans in India to develop more manufacturing facilities across EVs, digital health and electronic components,” Lokesh said in a post on LinkedIn.

“We will provide all facilities so that Foxconn can develop a ‘manufacturing city’ to create more jobs. Our government believes that the era of ease of doing business is over. Speed of doing business is the new mantra – and we will aim to move the fastest to create industrial zones for Foxconn and other large global manufacturing firms,” he added.

Last week, Hon Hai had reported that its net income for the June quarter reached NT$35 billion (about $1.1 billion), aligning with analyst expectations.

Aiming to capture 40% of the global AI server market, Hon Hai is leveraging its extensive manufacturing expertise and strong relationships with major tech companies worldwide.