Foxconn the world’s biggest contract manufacturer has decided for a long term investment commitment in India. This involves setting up an entire manufacturing ecosystem and to strengthen their supply chain within the country rather than just assembling its products. Foxconn Technology Group is a Taiwanese multinational electronics contract manufacturing company which manufactures and supplies electronics and electronic components.
Foxconn is a public limited company founded in 1974 by Terry Gou who is its current Chairman. The major products that the company manufactures include the BlackBerry, iPad, iPhone, Kindle, PlayStation 4, Xbox One and Wii U.
Terry Gou announced that the company is looking forward to make India as its electronics manufacturing ecosystem over the next five to 10 years. They would be focusing on manufacturing televisions, routers, switches, storage equipment and batteries in the country as part of long term investment. As India has close proximity to markets of West Asia, Africa, South-East Asia and Pakistan it serves as a good base to export its products to other countries.
Their main areas of investment includes hardware and software integration, application software and testing, in high-tech projects involving smart power transmission, energy efficiency and key components for the Internet of Things.
Foxconn operationalizes their activities in India by associating themselves with other multinational companies. Recently it has associated with Adani Enterprises for enhancing its energy efficiency and smart power transmission. It has also tied up with multiple partners such as handset manufacturers Micromax and Xiaomi, e-commerce marketplace Snapdeal and online refurbishing firm Greendust.
Foxconn has already invested more than $2 billion to set up 10-12 manufacturing facilities in states of Andhra Pradesh, Maharashtra and Gujarat. The company is planning to improve its logistics and its supply chain in India and have decided to increase their manufacturing facilities. For this it had tied up with Japan’s Softbank Corp., which is one of the biggest investors of many Indian start-ups. The Taiwanese firm is currently in a process of setting up an India-focused venture fund as a part of its initiative to invest and partner themselves with many start-ups and e-commerce companies in India.
