Taiwan’s Hon Hai Precision (better known as Foxconn) has plans to invest about $2 billion to set up factories and other facilities in India over the next 10 years.
Hon Hai chairman Terry Gou told the media in New Delhi that while it has not finalised details of its investment in the country, it was looking to build as many as 12 factories and establish the country as an export base, the Taipei Times reported.
The world’s largest electronics contract manufacturer, which assembles devices for Apple and Xiaomi, among others, plans to produce a range of devices in addition to smartphones and tablets. These include TVs, routers, storage devices and batteries.
Gou said that despite the company’s interest, it does have some concerns about the country’s infrastructure, power supply and bureaucracy. The availability of land and power will be key factors in deciding where to set up factories, he said.
Foxconn has been looking to set up operations in India, where demand for smartphones has soared, while wages in China have climbed, putting pressure on it to cut costs. India is the world’s third-largest smartphone market by shipments after China and the US.
Foxconn’s FIH Mobile unit said in March it will start manufacturing handsets in India for local maker Micromax as well as China’s Xiaomi. FIH closed its Chennai plant last year due to falling orders from Nokia and later from Microsoft Mobile.
Foxconn, together with Japan’s SoftBank and China’s Alibaba, also plans to invest $500 million in Indian e-commerce company Snapdeal.