Foxconn wants to expand its presence in India and is looking for more government incentives

While Taiwan’s $206 billion Hon Hai Technology Group (Foxconn) will continue to expand assembly and components activities in India, the company will continue to seek government incentives to boost its competitiveness, its chairman and CEO Young Liu told analysts. .

Hon Hai is the world’s largest electronics manufacturer. In India, the company makes Apple iPhones and has made the country its second home after China, with plants in Karnataka and Tamil Nadu. The company recently acquired a 300-hectare property in Bengaluru and has also begun construction of its $500 million plant in neighboring Telangana. Also, the company entered into a partnership with the Vedanta Group to manufacture semiconductor fabs.

Updating the company’s operations in India and differentiation from the competition, Liu said, “In terms of labor costs, India also has its advantages. “Hon Hai will continue to apply for government incentives to boost its competitiveness,” he said.

From 2006, Hon Hai entered India ahead of the competition and on a larger scale. During this time the company gained a lot of experience in managing local employees, supply chain and logistics. These are all important competitive advantages that have allowed the company to move faster than the market. It has also enabled the company to expand rapidly, he said.

increase in production

In addition to continuing this momentum, the company will also increase local production yields. India has now reached a population of 1.4 billion people, which represents a large potential market for mid- to high-end products for consumers to focus on. Therefore, it is necessary for the company to further expand assembly and component operations in India. “We see more and more suppliers investing in setting up plants in India and believe this will become more important over time,” Liu said.

Hon Hai has a holistic development of its supply chain, and not only in India – from Taiwan, Mainland China, Southeast Asia, South Asia, Middle East, Europe to the USA and industries from ICT to electric vehicles to semiconductors and software.

challenges

When investing in a new region or country, not only the language but also the culture and the production capacities as well as the completeness of the supply chain would be a challenge. Many players are still in the learning phase, he said.

Peter Bendor-Samuel, CEO of Everest Group, a global research company, recently said: that the US, and to a lesser extent its European allies, are increasingly concerned about over-reliance on China. So Foxconn’s customers insist on decoupling, or at least diversification. This secular trend is in full swing and will only intensify as the superpowers brace for the rise of China. India is the second best location for much of this work due to its large domestic market, well educated workforce and growing logistic capabilities.

The Hon Hai Group has 173 locations and offices in over 24 countries/regions worldwide. That year, Liu said, the company expanded to Taiwan, Mainland China, India, Vietnam and Germany. As the production trend in the electric vehicle industry is localized, the company will continue to expand its capabilities to meet our customers’ demand and differentiate itself with a global edge.

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