Taiwanese contract electronics manufacturer Foxconn has made a significant investment of $55.29 million (approximately Rs 461 crore) in its Bengaluru-based subsidiary, Foxconn Precision Engineering Private Limited.
According to a PTI report, the investment was channelled through Foxconn's Singapore-based subsidiary, Foxconn Singapore Pte Limited, which acquired about 46,08,76,736 shares at Rs 10 each.
Foxconn's expansion in Karnataka
Foxconn Precision Engineering, established about six months ago, is expanding its footprint in Karnataka.
In July, the company announced plans to set up a supplementary plant worth Rs 8,800 crore at the Devanahalli Information Technology Investment Region. Additionally, Foxconn has acquired 300 acres in Devanahalli for this purpose.
Employment and economic impact
The Karnataka government has highlighted that Foxconn's investment is expected to generate approximately 50,000 jobs in the first phase at Devanahalli. This is part of a larger commitment by Foxconn to create up to one lakh employment opportunities within the state over the next ten years.
Foxconn's new production plant
Foxconn's production at the new plant is scheduled to commence by April next year. The investment is planned to be spread over three phases: Rs 3,000 crore in Phase 1 (2023-2024), Rs 4,000 crore in Phase 2 (2025-2026), and Rs 1,000 crore in Phase 3 (2026-2027).
The company aims to manufacture one lakh units of iPhones by December 2025, escalating to two crore units by December 2028.
The investment is a strategic move by Foxconn, aligning with its 'China plus one' strategy to diversify production away from China. Foxconn, a primary supplier of Apple iPhone components, is expanding its manufacturing base in India, joining other major suppliers like Pegatron and Tata Electronics.
Join our new WhatsApp Channel for the latest startup news updates