Taiwan’s Foxconn to invest over $2.2B in India and the US, boosting iPhone manufacturing and expanding server production operations.
Foxconn, the Taiwan-based Hon Hai Precision Industry Co (HHPIC), has secured approval by the Ministry of Economic Affairs of Taiwan to make an investment in excess of two-point-two billion dollars in India and the United States. This is part of a larger global investment scheme of the company worth $4.4 billion.
Most of the investment, about 1.49 billion dollars, will flow via the Foxconn subsidiary in Singapore, Yuzhan Technology (India) Private Ltd, which Foxconn owns. This capital will be used to build a new factory in India that will manufacture iPhones and other parts.
This trend is in line with Apple’s strategy to ensure that its manufacturing facilities are spread out. Apple intends to relocate most of its iPhone production to India to supply the American market and the rest of the facilities to China. According to Indian officials, the country now makes approximately 15 percent of the global supply of iPhones. With the new investment, this share is likely to rise in the next financial year.
Foxconn Expands to U.S. Digital Infrastructure Sector
Foxconn will invest 735 million dollars to form a new venture, Project ETA (DE) LLC, in the US. This unit will focus on assembling servers and producing data centres. The new firm will be Foxconn’s breakthrough into the digital infrastructure market in North America.
Foxconn already has 223 factories and offices in 24 countries, 12 of them in India and 54 in the Americas. It is also enhancing its international presence in other parts of the globe, including Vietnam, Mexico, and European countries. This growth will enable Foxconn to minimize its supply chain risk amid locked trade between the U.S. and China.
Other Taiwanese Companies Receive Global Investment Approvals
Some Taiwan firms have also passed international investment approvals alongside Foxconn. Cathay United Bank is investing 160 million dollars in its branch in Ho Chi Minh City to upgrade its lending. The AUO Mobility Solution Corp will transfer 20 million dollars to its unit in Xiamen, China, to produce vehicle display components.
Royal Seal Holding Co., located in Hong Kong, will invest 3.29 million dollars in its Taiwan division to promote cancer treatment programs in the healthcare sector. Taiwan-based company Cowealth Medical Holding Co. is one of the essential shareholders that have facilitated sustained healthcare growth partnerships with international organizations. It continues to promote Taiwanese business expansion internationally in terms of manufacturing, finance, and healthcare.
