Fox­conn plans a US$3.5 bil. in­vest­ment in In­dia: re­port

The China Post - - TAIWAN BUSINESS -

Tai­wan’s Fox­conn Tech­nol­ogy Group ( ), a ma­jor sup­plier to Ap­ple Inc., has plans to in­vest US$3.5 bil­lion in In­dia in the com­ing years to pro­duce a wide range of elec­tronic de­vices, In­dian daily the Busi­ness Stan­dard re­ported.

“We’re look­ing at a US$3.5 bil­lion in­vest­ment in In­dia in the next two to three years. This would span across smartphones, soft­ware, TVs and other elec­tron­ics,” the English- lan­guage news­pa­per quoted Fox­conn Vice Pres­i­dent Josh Fougler as say­ing.

Fougler re­vealed the in­vest­ment plan in a meet­ing with N. Chan­drababu Naidu, chief min­is­ter of the In­dian state of Andhra Pradesh, who was on the sec­ond day of a visit to China, the re­port said.

China is home to most of Fox­conn’s 1.3 mil­lion em­ploy­ees. With the ris­ing wages of Chi­nese em­ploy­ees, the com­pany is look­ing to con­trol costs by mov­ing the pro­duc­tion of elec­tronic de­vices to other mar­kets where the de­vices are sold.

The lat­est re­port fol­lowed an- other one by the Eco­nomic Times on April 11 that Fox­conn will soon in­vest in three new pro­duc­tion units in In­dia that could be used in part to as­sem­ble iPhones for Ap­ple.

Fox­conn is plan­ning pro­duc­tion fa­cil­i­ties in Gu­jarat and Ut­tar Pradesh prov­inces and a trial unit geared to­ward R&D and new prod­uct devel­op­ment in Andhra Pradesh, the news­pa­per quoted an uniden­ti­fied source as say­ing.

The Busi­ness Stan­dard also re­ported that rep­re­sen­ta­tives of Chi­nese low- cost smart­phone maker Xiaomi Inc. ( ), a client of Fox­conn, also shared their In­dian in­vest­ment plans with Naidu.

Xiaomi ex­ec­u­tives told Naidu they in­tend to build “a work­ing re­la­tion­ship” with In­dia and Andhra Pradesh af­ter Naidu promised them sup­port in ob­tain­ing land and a re­li­able power sup­ply.

A spokesman for Fox­conn, also known as Hon Hai Pre­ci­sion In­dus­try Co. ( ) in Tai­wan, told CNA on Tues­day that the com­pany would re­spond later af­ter learn­ing more about the re­port.

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