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Hon Hai’s Indian Subsidiary Plans $1.541 Billion Investment for Local Factory Construction

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Hon Hai, also known as Foxconn, disclosed plans for its Indian subsidiary, Foxconn Hon Hai Technology India Mega Development Private Limited, to invest $1.541 billion in constructing a local factory. The capital increase involves Foxconn Singapore Pte Ltd acquiring ordinary shares of the Indian subsidiary at a unit price of 10 Indian rupees (INR), amounting to a total transaction value of $1.541 billion.

The investment’s primary purpose, as stated by Hon Hai, is to address operational needs. However, industry observers speculate that the move may be driven by the necessity for Hon Hai to expand iPhone production capacity in India.

Foxconn Hon Hai Technology India Mega Development Private Limited, established in November 2015 and located in Mumbai, Maharashtra, has been active in acquisitions related to equipment and machinery. In mid-July, the subsidiary acquired machinery and equipment, totaling $33.27 million (approximately NT$1.002 billion), from July 19 of the previous year to mid-July of the current year. The transaction involved acquiring machinery and equipment from APPLE OPERATIONS LIMITED.

Industry analysts suggested at the time that the machinery and equipment acquisitions were likely geared toward meeting the manufacturing needs of Apple’s new iPhone 15 products in India.

Hon Hai’s strategic moves in India also included the purchase of land in Bengaluru, Karnataka, announced in late May. As the company continues its investments and acquisitions in the region, industry watchers closely monitor the developments, particularly regarding potential expansions in iPhone production capacity.

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