Foxconn to invest $5B to set up first of up to 12 factories in India

Foxconn is responding to India's bid to attract manufacturers to the country

As part of its plan to set up to 12 manufacturing facilities in India by 2020, contract manufacturer Foxconn Technology Group is investing US$5 billion in a factory and other facilities in the western Indian state of Maharashtra.

The Indian government has been coaxing foreign companies, including smartphone makers, to set up manufacturing units in India under its "Make in India" program.

A number of smartphone makers are planning to make the devices in the country, with Chinese maker Xiaomi expected to announce its first phone manufactured in India on Monday.

The government recently gave security approval to Huawei Technologies' plans to set up a manufacturing facility for network equipment in the country, though the facility still needs final approval from the ministry of commerce as it is a Chinese company, according to sources close to the matter. India and China have a border dispute.

Foxconn and the government of Maharashtra have entered into a memorandum of understanding to build a large electronics factory in the state with an investment of $5 billion, which would create employment for at least 50,000 people, state chief minister Devendra Fadnavis said after the signing of the agreement at which Foxconn CEO Terry Gou was present.

For the contract maker, India could present an opportunity to build products like smartphones both for the booming local market and for global customers, if it is able to iron out the country's significant infrastructure bottlenecks.

The maker of a variety of products for various companies, including the iPhone, already employs over a million workers in China, where it has factories across the country.

But the company has faced labor shortages in China, as many workers are simply looking for the highest wages possible, and are happy to leave for better jobs. Gou has even said that he expects fewer young Chinese workers to enter his factories in the future.

To expand its manufacturing base, Foxconn is developing robots, and looking at setting up factories in India and Indonesia.

On Saturday, Gou said Maharashtra had strong talent and innovation centers. He did not disclose what products the company would make at the factory in the state, describing it as "business secret information." Gou added that the investment in Maharashtra would be over a period of five years.

Foxconn said in a statement that the investments in Maharashtra will be in the areas of manufacturing, research and development, and other "strategic capabilities," and to tap into the pool of local talent in the technology and manufacturing sectors.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags consumer electronicsFoxconn Technology GroupManufacturingsmartphonesindustry verticals

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro and Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?