Foxconn's business in India hits $10 billion, to bet $2 billion more

Hon Hai Precision, commonly known as Foxconn, has revealed that its Indian business has already hit roughly $10 billion annually through its 30 factories. This information was shared in an analysts call following the announcement of the company’s  second quarterly financial results in Taipei on Monday.
 

The figure constitutes about 5 per cent of the global revenues of a company that is the world’s largest EMS player.  
 

Hon Hai CEO and chairman, Young Liu, said the company will be investing over $2 billion in India. “I was in India for the Semicon India summit last month and there was excitement on what India can achieve. Hon Hai’s global revenues were over $200 billion last year and, based on the potential of the Indian market, if we can implement our plans there, investing several billion dollars in India is just the beginning. Our capex in India will grow from last year and our outlook has not changed,” he said.
 

Lui said its nine campuses were the equivalent of 500 football fields. It has built 20 dormitories that can shelter tens of thousands of workers. “The Indian story has come up in the last two analysts calls which shows the potential energy of the market,” said Lui. 
 

Foxconn’s revenues in India come from various areas, with one big area being the fact that it is Apple’s largest contract
manufacturer here. According to estimates by S&P Global, Foxconn exported $2.06 billion worth of phones (mainly iPhones) from India in FY23.
 

Foxconn company Bharat FIH also makes mobile devices for non-Apple players in India. Foxconn will also soon make iPods for Apple in India for which it will build extra capacity. Bharat FIH is already the largest EMS player in the country with a 12.5 per cent share of the market, ahead of its closest competitor, Dixon Technologies. According to estimates, the Indian EMS market will grow from $20 billion in CY21 to $80 billion by CY26.
 

That apart, Foxconn also makes electronic components for auto makers such as Ola and Ather Energy.  It also does contract manufacturing for telecom products, IT hardware, mechanics, televisions, and hearables.
 

Foxconn has announced massive investments in states such as Telangana, Karnataka, and Tamil Nadu and talks are also on for semiconductors in Gujarat.