Foxconn invests Rs. 461 crore in Bengaluru unit

Taiwanese electronics manufacturing services major Foxconn has infused USD 55.29 million (about Rs 461 crore) in Bengaluru-based Foxconn Precision Engineering Private Limited, according to a regulatory filing.

Foxconn Precision Engineering was incorporated around six months ago.

The company has made the investment through its Singapore-based subsidiary Foxconn Singapore Pte Limited.

Foxconn Singapore has acquired about 46,08,76,736 shares at Rs 10 each, amounting to around USD 55.29 million (Rs 460.87 crore), according to the filing.

In July, Foxconn had proposed to set up a Rs 8,800-crore supplementary plant to that of its unit at the Devanahalli Information Technology Investment Region in Karnataka. It has also bought 300 acres in the area.

On March 20, the Karnataka government signed a substantial memorandum of understanding (MoU) with Foxconn, wherein the company committed to investing in a mobile manufacturing unit, which would provide employment opportunities for 50,000 people in the first phase, and one lakh employment opportunities within the state in the next ten years.

Production at the plant is scheduled to commence by April next year, with investments spread over three phases.

It is expected that Foxconn will invest Rs 3,000 crore in Phase 1 (2023-2024), followed by Rs 4,000 crore in Phase 2 (2025-2026), and Rs 1,000 crore in Phase 3 (2026-2027).

The manufacturing targets include one lakh units of iPhones by December 2025, 50 lakh units by December 2026, one crore by December 2027, and two crore by December 2028.

This move by the company is part of its ‘China plus one’ strategy to diversify production away from China. Foxconn is one of the primary suppliers of Apple iPhone components apart from Pegatron and Tata Electronics in India.