Taiwanese electronics manufacturer Foxconn has invested USD 55.29 million in Bengaluru-based Foxconn Precision Engineering, a fresh capital made through the company’s Singapore-based subsidiary Foxconn Singapore.
Foxconn Singapore has acquired 46,08,76,736 shares in total at Rs 10 each.
The company’s Bengaluru unit was incorporated six months ago to set up a Rs 8,800 crore supplementary plant to its unit at the Devanahalli Information Technology Investment Region in Karnataka. It has also bought 300 acres of land in the area.
Earlier in March Foxconn signed a substantial memorandum of understanding (MoU) with the Karnataka government. This deal marks the electronic manufacturer’s commitment to investing in a mobile manufacturing unit, which would provide employment opportunities for 50,000 people in the first phase and around one lakh employment opportunities within the state in the next ten years.
The production at this plant has not started yet but it is scheduled to commence by April next year, with investments spread over three phases.
It is reportedly said that Foxconn is likely to invest Rs 3,000 crore in Phase 1 (2023-2024), Rs 4,000 crore in Phase 2 (2025-2026) and Rs 1,000 crore in Phase 3 (2026-2027). Considering these huge investments, the manufacturing targets are expected to be in the units of lakhs which includes 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.
According to reports, Foxconn’s manufacturing in India underscores its attempts to diversify its production away from China. The company is one of the primary suppliers of Apple iPhone components apart from Pegatron and Tata Electronics in India.
