Foxconn pledges $55m to Bengaluru-based subsidiary
Taiwanese electronics giant Foxconn has taken a significant step towards expanding its manufacturing activity in India.
According to a regulatory filing, the company has acquired more than 460 million shares in its Bengaluru-based unit, Foxconn Precision Engineering, via its Singapore subsidiary. The total investment comes to USD 55 million.
In July, Foxconn incorporated Foxconn Precision Engineering in order to set up a new plant in Devanahalli. The company will start production at this facility by April next year, with a target of producing 100,000 iPhones by December 2025 and 10 million units by December 2028.
The news represents a fresh twist in the on-going story of Foxconn and its commitment to India. In the summer, Foxconn pulled out of USD 19.5 billion JV with India's metals-to-oil conglomerate Vedanta to set up factories in Gujarat. But it also inked a Memorandum of Understanding (MoU) with the Karnataka government to set up a mobile manufacturing unit.
Foxconn wants to diversify its supply chain beyond China. It has deepened its commitment to India as a viable alternative for mass production of iPhones, alongside fellow manufacturers Pegatron and Tata Electronics.