Foxconn to Invest $2.2B in India & US Amid China Diversification

• Foxconn gets approval for $2.2B investment in India and the U.S.
• Funds to boost iPhone production in India and set up a U.S. data unit.
• Taiwan also clears investments by Cathay United, AUO, and Royal Seal.

Taiwanese electronics giant Hon Hai Precision Industry Co., better known as Foxconn, purports to have received permission from the Ministry of Economic Affairs of Taiwan to invest upwards of $2.2 billion in India and the United States.

Of this amount, about $1.49 billion is to be referred to a Foxconn Singapore subsidiary for further investment in Yuzhan Technology (India) Private Ltd., another Foxconn unit. The construction will take place for manufacturing iPhone-related equipment and components.

It is believed that this investment will offer an opportunity to Foxconn towards ensuring that production is diversified away from China further as a result of ongoing U.S.-China trade tension.

Also Read: iPhone Makers Cross 20% Local Sourcing from India: FM Sitharaman

Another project being invested in by Foxconn is one to the tune of $735 million in the United States to create an Illinois-based company called Project ETA (DE) LLC. This company will concentrate on making data center equipment and assembling servers.

These developments can be seen as tattooing on the world map of Foxconn’s expansion plans, with a growing footprint in India, the U.S., Mexico, Vietnam, and Europe. The company currently operates 223 manufacturing plants and offices across 24 countries, out of which 12 are in India.

Other Taiwanese entities received investment clearances. Cathay United Bank will invest $160 million in its Ho Chi Minh City branch to support lending operations.

AUO Mobility Solution Corp., under AUO Corp., is cleared to invest $20 million in its Xiamen location for automotive display components. Royal Seal Holding Co., supported by Cowealth Medical Holding, meanwhile, received approval to invest $3.29 million in its cancer treatment operations in Taiwan.