Taiwan’s Hon Hai Precision (also known as Foxconn) has announced plans to invest $5 billion in a factory in the state of Maharashtra, in west India, which will employ up to 50,000 people.
The company’s chairman, Terry Gou, said last week during a three-day trip that the company had plans to invest heavily in factories and other facilities in India over the next 10 years.
Gou signed a signed a memorandum of understanding with the government of Maharashtra to invest $5 billion over five years, Reuters said. He declined to specify what products the facility would manufacture, but earlier reports said Foxconn plans to produce a range of devices in addition to smartphones and tablets in India.
The world’s largest electronics contract manufacturer, which assembles devices for Apple and Xiaomi, among others, 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.
The announcement comes as a major boost for Indian prime minister Narendra Modi, who has been working to attract foreign investment to help speed up the country’s sluggish economic growth.