Foxconn Bets Big On India As Global Supply Chains Shift From China

Taiwanese electronics major Foxconn, formally known as Hon Hai Precision Industry Co. Ltd., has received regulatory approval from Taiwan’s Ministry of Economic Affairs (MOEA) to invest over $2.2 billion in India and the United States.

This strategic move aligns with the global trend of diversifying supply chains away from China.

The MOEA’s Department of Investment Review cleared a $1.49 billion investment proposal to increase capital in Foxconn Singapore Pte Ltd, a subsidiary of the group.

In turn, the Singapore-based unit will funnel this investment into Yuzhan Technology (India) Pvt Ltd, an Indian subsidiary of Foxconn.

Foxconn expands Indian operations

Foxconn has already invested $1.48 billion (approx. Rs 12,800 crore) into its Indian operations.

The company is currently building a manufacturing facility in Sriperumbudur, Tamil Nadu, which will focus on assembling smartphone display modules.

As a key supplier for Apple, Foxconn’s increased presence marks a major milestone in India’s journey to become a global manufacturing hub.

India’s FDI inflows surge amid policy reforms

India has seen a dramatic rise in foreign direct investment (FDI), attracting over $500 billion between 2014 and 2024, more than double the $208 billion received in the previous decade.

According to Sanjay Nayar, President of industry body Assocham, the bulk of this FDI, about $300 billion, arrived between 2019 and 2024, indicating an accelerated growth trajectory.

Nayar attributed this surge to transformative government reforms like Make in India, Digital India, and the Production Linked Incentive (PLI) scheme, which have simplified business operations and positioned India as a centre for clean technology and sustainable growth.

India becomes a smartphone manufacturing hub

In 2014, India imported 75–80% of its smartphones.

But due to PLI incentives, global giants like Apple—via Foxconn and Wistron—now assemble iPhones in India.

As a result, smartphone exports have jumped to $21 billion, showcasing India’s evolution from a consumer to a producer in the electronics supply chain.

India also recorded an 18% rise in manufacturing FDI in FY 2024–25, totalling $19.04 billion, compared to $16.12 billion in the previous fiscal year.

According to government data, Singapore led the FDI inflow with a 30% share, followed by Mauritius (17%) and the United States (11%).

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