According to foreign reports, Hon Hai Group plans to build a $1.5 billion display module factory near Chennai, India. Indian officials have revealed that this new factory will specifically supply critical components to Apple. Despite President Trump's call for the company to move its manufacturing operations back to the United States, Apple continues to leverage Hon Hai Group to expand its supply chain in India.
Hon Hai Group recently announced on the London Stock Exchange (LSE) that it will invest approximately $1.5 billion through its subsidiary Yuzhan Technology India. According to a report by the Financial Times (FT), Indian government officials have revealed that this $1.5 billion new factory is located very close to the iPhone assembly plant, and Apple plans to switch all 60 million iPhones sold in the US market to India by the end of next year.
Tamil Nadu officials previously estimated that this new factory would create 14000 job opportunities. According to Counterpoint research data, India's share of global iPhone production is expected to increase from 18% in 2024 to 32% in 2025.
FT pointed out that this investment by Hon Hai Group is the second major investment announcement of the month. Last week, the Indian government approved Foxconn's plan to establish chip assembly plants in Jewar, Uttar Pradesh, and HCL Technologies in India. Foxconn announced early last year that it plans to spend $37.2 million to establish a semiconductor plant, which will be put into operation in 2027 to produce chips for laptops and smartphones.
The latest investment case of Hon Hai Group shows that Apple continues to shift its production focus from Chinese Mainland to India. According to foreign reports, President Trump of the United States complained last week that Apple has set up factories in Chinese Mainland for many years, directly choking on CEO Cook of Apple: "We are not interested in you building factories in India!"
Hon Hai has set up factories in multiple locations in India, including Tamil Nadu, Karnataka, and Telangana, to strengthen the resilience of Indian manufacturing and supply chains. Bangalore in Karnataka mainly produces iPhones and is the main production hub of Foxconn. It is rumored that Foxconn plans to produce 25-30 million iPhones in India this year, more than twice as many as last year. Foxconn's Indian subsidiary assembled AirPods at its new factory in Hyderabad, Terengganu in April, which is the second product Foxconn has assembled for Apple in India.
In addition to the Indian layout, Reuters quoted sources as saying that Zhilu Capital, a private equity firm in Chinese Mainland, hired Jefferies to assist in the sale of UTAC, a Singapore semiconductor packaging and testing giant, and Hon Hai was one of the potential bidders. Foxconn and Jefferies declined to comment, and United Technologies and Zhilu Capital did not immediately respond to requests for comment.
RFQs/Order (0)