Foxconn Singapore, a subsidiary of the Taiwanese contract manufacturing giant, has increased its stake in its Indian unit, Foxconn Hon Hai Technology India Mega Development, by acquiring 1.203 billion ordinary shares valued at approximately USD 144 million.
This investment comes on the heels of Foxconn Chairman Young Liu's recent visit to India, where he met with Prime Minister Narendra Modi and other key leaders.
The capital injection is part of a broader global expansion effort by Foxconn, which made similar investments in the United States, Mexico and Europe on the same day. The largest of these investments was in the United States, where Foxconn Assembly LLC, through its subsidiary Cloud Network Technology USA Inc., received an infusion of USD 253 million. Mexico followed with an investment of USD 241 million, and Europe saw a capital increase of EUR 180 million.
In India, Foxconn's latest investment is seen as a move to enhance its operational capacity and diversify its manufacturing portfolio beyond smartphones. Chairman Young Liu has indicated that the company is positioning itself to move up the value chain in India by expanding into sectors such as information and communication technology (ICT), electric vehicles (EVs), energy and digital health. This includes plans to target the EV market, particularly in battery production, and to venture into the digital health industry with a focus on wearables and home-use medical devices.
In addition to its manufacturing ambitions, Foxconn is also exploring the possibility of setting up townships in Tamil Nadu, mirroring its successful models in Taiwan and China. These townships are designed to improve efficiency and provide better living conditions for employees, which Liu believes will ultimately benefit both Foxconn and its customers.
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