Apple supplier Foxconn announced a $500 million injection into its India unit on Thursday, as it steps up the expansion of its production activities in the country.
The company’s Singapore unit had acquired 4.08 million shares in Foxconn Hon Hai Technology India Mega Development Private Limited, it said.
The announcement comes after reports last month that the Taiwan-based manufacturer plans to quadruple the workforce at its iPhone factory in India over two years.
The move is a part of the world’s largest contract electronics maker’s efforts to adjust production amid Covid-related disruptions in China. Foxconn said last month it expects business to be “flat” in 2023.
The company also grabbed headlines in recent weeks for imposing tough Covid restrictions at its Zhengzhou plant in China which resulted in worker unrest.
Foxconn plans to boost the workforce at its plant in the southern Indian state of Tamil Nadu to 70,000 by adding 53,000 more workers over the next two years.
The company shared its plans with Tamil Nadu officials about accelerating its hiring efforts at the Indian plant due to disruptions in China, according to a government source.
Meanwhile, a person in Taiwan with knowledge of the matter told Reuters that Foxconn was expanding its operations in India to increase its capacity for basic models and to meet Indian demand.
Formally called Hon Hai Precision Industry Co Ltd, Foxconn opened the India plant in 2019 and has been ramping up production. It began producing the iPhone 14 this year.
- Reuters, with additional editing by Vishakha Saxena