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Taipei, Aug. 12 (CNA) FIT Hon Teng Ltd., a subsidiary of Taiwan-based manufacturing giant Hon Hai Precision Industry Co., is expanding production capacity in India and Vietnam by investing a total of US$500 million in the two markets.
In an announcement posted on the Taiwan Stock Exchange (TWSE), where shares in iPhone assembler Hon Hai, better known as Foxconn globally, are traded, the company said Hong Kong-listed FIT Hon Teng has injected US$500 million into its unit Foxconn Interconnect Technology Singapore Pte. Ltd. (FIT Singapore).
Through FIT Singapore, FIT Hon Teng will spend US$400 million to invest in Chang Yi Interconnect Technology (India) Private Ltd., and invest the remaining US$100 million in Fu Wing Interconnect Technology (Nghe An) Co. Ltd.
According to Hon Hai, Chang Yi Interconnect Technology previously acquired a parcel of land located in Hyderabad city in the Indian state of Telangana to build a factory, a research and development center and dormitories.
Construction of the factory in Hyderabad started in mid-May. Industrial sources said the Hyderabad production site is scheduled to begin mass production by the end of 2024 at the earliest to roll out AirPods for Apple Inc.
As for the investment in Vietnam, local news outlets reported in late July that FIT Hon Teng selected WHA Industrial Zone in Nghe An, the largest province in the Southeast Asian country, with a plan to manufacture various electronic products such as wireless headsets, connectors, wireless chargers and speakers.
In late July, Hon Hai, the world's largest contract electronics maker, signed a letter of intent (LOI) with the government of the southern Indian state of Tamil Nadu, committing to building a new mobile components manufacturing facility in the Indian state.
Tamil Nadu's agency for investment promotion announced the signing of the LOI on Twitter, saying that Hon Hai will invest about 16 billion Indian rupees (US$193 million) in the state's Kanchipuram District.
In early July, Hon Hai announced it was pulling out of a joint venture with Indian conglomerate Vedanta Group to make semiconductors in India. According to Indian media reports, the breakup may have been caused by the slow pace at which the joint venture was proceeding.
The reports said the project was hindered by a lack of technical partners, and the Indian government required the joint venture to resubmit its application for awards and subsidies to deal with new assessment conditions.
However, on July 30, Hon Hai Chairman Liu Young-way (劉揚偉) met with Indian Prime Minister Narendra Modi and said the company remains committed to building a semiconductor ecosystem in India.
On its twitter page, the Indian Prime Minister's office said Modi welcomed "Foxconn's plans to expand semiconductor and chip manufacturing capacity in India."
