Foxconn's India arm intends to invest INR 1,200 crore in a factory construction project on its own land, emphasizing operational necessities, as per a recent stock exchange filing. The investment will flow through its subsidiary, Hon Hai Technology India Mega Development, aligning with its broader strategy of expanding operations in the country. This move follows an earlier announcement of a substantial USD 1.5 billion investment in an Indian construction venture. Foxconn's initiatives coincide with India's drive to attract global semiconductor firms, aiming to bolster domestic manufacturing and reduce dependency on China. With the Indian semiconductor industry poised to hit USD 55 billion by 2026, the sector holds significant growth potential, driven by various consumer electronics segments.
Foxconn's India subsidiary plans to invest INR 1,200 crore in constructing a factory on its own land, citing operational requirements as the primary motive, according to a recent stock exchange filing. The investment will be channelled through its subsidiary, Hon Hai Technology India Mega Development. This move follows an earlier report that the Apple supplier would inject over USD 1.5 billion into an Indian construction venture.
The Taiwanese conglomerate has been expanding its footprint in India, as evidenced by its announcement last month of a USD 37.2 million investment in collaboration with the HCL Group to establish a chip packaging and testing facility. This initiative followed the collapse of its semiconductor joint venture with Vedanta. The company has set ambitious goals to double its employment, investment, and business size in India within a year.
This development aligns with India's efforts to attract global semiconductor companies to bolster domestic manufacturing and reduce reliance on China. Following Prime Minister Narendra Modi's visit to the US, Micron committed USD 2.75 billion to establish a DRAM and NAND assembly, testing, marketing, and packaging facility in India. Similarly, Applied Materials plans to invest USD 400 million over the next four years to establish a semiconductor centre for innovation and commercialization.
The Indian semiconductor industry is expected to reach a market value of USD 55 billion by 2026, largely driven by demand from sectors such as smartphones, wearables, automotive parts, and computers. These segments collectively constitute over 60% of the market, indicating significant growth potential in the coming years.
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