Taiwanese Foxconn considers investing “more than a trillion dollars” in India

Taiwanese electronics giant foxconnkey provider of Manzanasaid on Monday that he sees potential in investing “several billion dollars” in Indiacountry in which the company wishes to diversify its activity.

Foxconn – also known by its official name, Hon Hai Precision Industry – is the world’s largest contract electronics manufacturer, assembling devices for many companies, most notably Apple’s iPhones.

The company is active in more than twenty countries, but most of it is in China, a dependency it is trying to reduce.

“From the point of view of the potential size of the Indian market and whether we can fully implement our plans there, I believe that a multi-billion dollar investment is just the beginning”Foxconn president Young Liu said when asked on a conference call to discuss results if the company planned to invest $2 billion in India.

Foxconn announced in May the purchase of a huge piece of land on the periphery of the Indian technology hub of Bengaluru for US$37 million.

The group currently has nine production centers and owns more than 30 factories in India, with a “Business figure of about US$ 10,000 million a year”according to Liu.

It now plans to expand its operations in the country to “essential components” for consumer electronics and electric vehicles in order to improve their competitiveness, he said without elaborating.

Foxconn announced on Monday a 1% drop in its net profit in the second quarter, while its turnover fell 14% in a year, to US$ 40.8 billion – a sign of the deterioration of the global electronics market in a context of economic recession.

Source: AFP