A Foxconn subsidiary announced a fresh investment in an Indian entity, highlighting Foxconn's commitment to ramp up its diversification move away from China.
According to a corporate filing by FIH Mobile, a subsidiary of Foxconn, to the Stock Exchange of Hong Kong, Bharat FIH Limited will make a capital injection in Rising Stars Hi-Tech Private Limited, a direct wholly-owned subsidiary of Bharat FIH incorporated in India, in an aggregate amount of US$50 million (about INR4 billion) as a long-term investment for working capital and general corporate purposes, and the injection is scheduled to be effected in December 2023.
This is the second investment Foxconn has made within two weeks. In late November, Hon Hai Precision, Foxconn's ultimate controlling stakeholder, announced a fresh investment worth NTD50 billion (US$1.6 billion) through Foxconn Hon Hai Technology India Mega Development Private Limited, another subsidiary of Foxconn, to build manufacturing facilities.
Also in late November, unnamed officials quoted by the Economic Times indicated that Apple's goal is to manufacture close to US$1 trillion worth of iPhones in India by either the end of March 2024 or possibly June 2024. They mentioned that Apple has increased production capacity with its manufacturing partners, achieving a production value of over 600 billion Indian rupees in iPhones between April and October.
Foxconn Hong Hai Technology India Mega Development Private Limited is engaged in iPhone and parts manufacturing, but Bharat FIH is not involved in iPhone manufacturing. According to the Bureau of Indian Standards, Bharat FIH makes smartphones and smart TVs for other Android device brands, such as Xiaomi, and parts for electric two-wheelers.
Still, Foxconn's investments in Indian entities within weeks may signal that Foxconn is expanding its production capacity to iPhone and other consumer electronics.