Foxconn has earmarked USD 600 million for chip and component production
Foxconn plans to expand production of chips and components for the iPhone. To this end, the Taiwanese manufacturer will invest USD 600 million in the construction of facilities in India.
The company will build two Foxconn plants in the Indian state of Karnataka: one for the production of components for Apple smartphones and the other for the production of microchips. The company has allocated USD 350 million for the facility for iPhone components and USD 250 million for semiconductor products.
According to the Taiwanese company’s project, the new plants will create about 13,000 jobs for the local population. The local authorities are fully supporting the construction of Foxconn’s facilities, hoping that its example will attract other global manufacturers.
In general, we can say that India is becoming more and more attractive to foreign companies. The local government is offering good business conditions, increasing the flow of capital into promising sectors such as electronics and solar energy.
Foxconn business overview
Foxconn is Taiwan’s largest company and a global leader in the electronics OEM sector. Terry Gou founded the company in 1974 to manufacture plastic components for televisions. Active development of the company began in the late 1970s. At that time, European and American manufacturers began to locate their factories in Asian countries in order to optimise costs.
In 1981, the company opened a new line to produce computer connectors and, a little later, began to manufacture cables. By the end of the 1980s, Foxconn’s customers included almost all electronics manufacturers. Increasing demand for its products led to the opening of manufacturing facilities outside Taiwan in China.
The company went public on the Taiwan Stock Exchange in 1991, with Gou retaining a 25% stake. The proceeds allowed Foxconn to expand the number of its companies significantly:
– in 1993, the company opened two more plants in China;
– 1994 saw the opening of two research centres in Japan and the USA;
– 1998 was the year of the start of production facilities in the UK;
– in 1999, production plants were opened in the United States and Ireland;
– in 2000, the company opened a representative office in the Czech Republic and bought a factory in Puerto Rico, previously owned by Intel.
Since 1996, Foxconn has been producing PC cases; its facilities also assemble smartphones of various brands, game consoles, cameras, and e-books. In addition, the company makes equipment for Cisco Corporation and chips for Intel and is the leading supplier of components for Apple. Foxconn also produces equipment under its brand.