Amid the US's strategy to rebuild a global supply chain that counts on friendshoring, the US will scale up its semiconductor collaboration with India and invite India to be part of the IPEF (Indo-Pacific Economic Framework).
Foxconn's chairman Young Liu recently made a visit to China and India, raising eyebrows in the two countries and beyond and marking an investment shift away from China to India with Foxconn's '3+3' strategy.
Apple reportedly reshuffled its management team and promoted a head of its Indian market, making India a separate sales region, a sign of the India's growing importance to Apple, which has seen double-digit sales growth in the South Asian nation.
HCL Technologies, one of India's IT services and consulting giants, is looking to double its semiconductor business in 3-4 years. However, it remains to be seen whether HCL will do it through organic growth or investing in other entities.
Salcomp, the Finland-based mobile charger manufacturer, plans to expand its Indian manufacturing business not only for mobile phones but also for EVs and renewable-related electronics to capitalize on India's roadmap to build a self-reliant electronics ecosystem.
In 2022, India's trade deficit from semiconductor imports from Taiwan, China, Hong Kong, South Korea and Japan amounted to US$11.45 billion. The trade deficit for electronics products came to US$47.1 billion. India racked up a total deficit of over US$100 billion in its trade with China. A question then needs to be asked: How much of that trade deficit could be attributed to Taiwanese firms' contributions to Chinese industries?
Following a trip to India by Foxconn's chairman Young Liu, Foxconn reaffirmed its commitment to Indian investments, which may include new factories and a foray into new areas, such as semiconductors and EVs, and boost India's role in global electronics manufacturing.
India has closed the application window for its solar module manufacturing incentive scheme, and Reliance and Tata are reportedly bidding on the grants. However, Adani Group, engulfed in a fraud allegation, might not participate.
Foxconn announced an expansion in its investments in India, signing an MoU with the government of Telangana for electronics manufacturing amid its accelerated diversification efforts into the South Asian country. On the other hand, the world's largest electronics manufacturer reportedly plans to invest in another iPhone plant in Karnataka.