Taiwanese electronics assembly giant Foxconn is set to invest $1.5 billion in India as it seeks to reduce geopolitical and tariff risks by shifting its production out of China.
A Singapore-based subsidiary of Foxconn announced on Monday that it will purchase 12.77 billion shares of its Indian subsidiary at 10 rupees (€0.10) each, totalling 127.74 billion rupees (€1.33 billion).
This subsidiary, known as Yuzhan Technology India, manufactures smartphone components in the southern Indian state of Tamil Nadu, according to local media.
No specific details about the investment were provided in the filing submitted to the Taiwan Stock Exchange on Monday.
India is positioning itself as an alternative production hub to China.
New Delhi has offered billions of dollars in incentives to encourage manufacturing in India, leading to a surge in local electronics production.
Foxconn’s investment comes after Apple CEO Tim Cook stated in early May that he expects “the majority of iPhones sold in the United States” during the current quarter to be sourced from India.
This move allows the US tech giant to circumvent the 145% tariffs the US imposes on products originating in China, which has traditionally been the primary manufacturing base for Apple’s renowned smartphones.
