Foxconn Technology is set to invest over $1.5 billion in an Indian construction project to meet the operational requirements of the Apple supplier, as revealed in Taiwanese security filings on Monday.

Foxconn Technology's investment of $1.541 billion was executed through its subsidiary, Hon Hai Technology India Mega Development, registered in Maharashtra state since 2015, as indicated in a securities filing and Indian corporate records. The same subsidiary, according to a concurrent filing, will allocate an equivalent amount in Indian rupees for a construction project addressing "operational needs."

Foxconn, a key Apple supplier, holds substantial operations in mainland China, with its factories playing a crucial role in iPhone manufacturing. The company faced significant challenges during the Covid-19 pandemic in 2022 when lockdowns severely disrupted production.

The disruptions caused by Covid-19 lockdowns and broader geopolitical uncertainties have led Apple suppliers like Foxconn to reconsider their heavy reliance on China. Foxconn has disclosed various projects in India as part of this diversification strategy, including a $600 million project in Karnataka state and a $500 million factory in Telangana state.

This recent investment follows Foxconn's withdrawal from a $19.5 billion chipmaking joint venture in India a few months ago, citing a "mutual agreement." Despite this, Foxconn expressed continued confidence in India's semiconductor industry ambitions.

About Foxconn Technology

Hon Hai Precision Industry Co., Ltd., known as Hon Hai Technology Group in China and Taiwan, and internationally as Foxconn, is a Taiwanese multinational electronics contract manufacturer founded in 1974. In 2021, the company achieved an annual revenue of 6.83 trillion New Taiwan dollars (approximately US$214 billion) and secured the 20th position in the 2023 Fortune Global 500 list. As the world's largest electronics contract manufacturer, Foxconn is predominantly based in China, contributing significantly to its revenue, and stands as one of the largest employers globally. Terry Gou, the company's founder, also served as its former chairman.