Foxconn Singapore Buys 1.2 Bn Shares Of Its India Unit

As a part of its India operations expansion plans, Foxconn Singapore has bought 1.203 Bn ordinary shares from its Indian unit, Foxconn Hon Hai Technology India Mega Development Private Ltd, for around $144 Mn, ET reported.

This development follows Foxconn’s chairman and CEO Young Liu meeting Prime Minister Narendra Modi earlier this month to discuss the electronics manufacturer’s investment plans in India. 

A few days back, Liu told ET that Foxconn is eyeing to move up the value chain beyond smartphones and make products for sectors like information and communication technology (ICT), electric vehicles (EV), energy and digital health in its next growth phase in India.

This also comes on the back of Liu outlining that the company has invested $10 Bn in India so far and plans to infuse more capital into the country in the coming year.

Foxconn,which currently assembles Apple iPhones in the country, is reportedly looking to set up assembly infrastructure for iPads at its Tamil Nadu’s Sriperumbudur facility. The company is also mulling manufacturing artificial intelligence (AI) servers at its facilities in India.

In December last year, Foxconn was reported to be planning to invest an additional INR 13,911 Cr ($1.67 Bn) in Karnataka, in a further boost to the tech giant’s plan to ramp up iPhone manufacturing across India.

In the same year, Foxconn announced an INR 8,500 Cr investment for a manufacturing unit expected to generate over one lakh employment opportunities in Karnataka over the next 10 years.

In recent times, many electronics companies have significantly expanded their footprint in India, with Foxconn, Wistron, Tata Electronics, and Kaynes Technology leading this trend.

However, the company has also come in negative light recently over a report citing Foxconn’s discriminatory hiring practices of excluding married women from jobs at its iPhone assembly facility in India.

Following this, the National Human Rights Commission (NHRC) issued notices to the central labour ministry and the state government, seeking a detailed report in the case. 

Officials from the labour department visited Foxconn’s factory in July. There have been no further updates on the case since then.