Foxconn wants to create townships in India, expand into ventures beyond smartphone manufacturing

Foxconn plans on significantly expanding its operations in India as part of a broader strategy to move beyond smartphone manufacturing and into new sectors such as electric vehicles (EVs), energy, and digital health.

Foxconn’s Chairman, Young Liu, recently shared these ambitious plans during his visit to India, signaling the company’s commitment to playing a larger role in the country’s economic growth.

Foxconn is widely known for its extensive vertical integration capabilities, particularly in the information and communication technology (ICT) sector. However, the company is now looking to diversify its portfolio by entering new industries, including EVs, batteries, and digital health, according to a report by the Economic Times. Liu highlighted that this move is part of Foxconn’s efforts to climb higher up the value chain in India.

The company’s strategy also includes leveraging generative artificial intelligence (GenAI) to drive innovation across these new sectors, making what once seemed impossible, possible.

In the energy sector, Foxconn aims to focus on battery production, aligning with its broader EV strategy. Additionally, the company plans to delve into digital health, exploring opportunities in wearable technology, home-use medical devices, and cloud-based health systems for hospitals.

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Foxconn’s expansion in India isn’t limited to manufacturing. The company is also looking to develop townships, replicating successful models from Taiwan and China. These townships would be integrated with Foxconn’s industrial parks, providing housing and other amenities for workers. Liu emphasised that these developments would enhance efficiency and add value not just for employees, but also for Foxconn and its customers.

One such project is already underway in Tamil Nadu, where Foxconn has inaugurated a massive industrial housing complex in Sriperumbudur. This complex, built within the Vallam Vadagal Industrial Park by the State Industries Promotion Corporation of Tamil Nadu (Sipcot), can accommodate around 18,720 workers. It includes facilities such as a laundromat, gym, recreational areas, cafeteria, and dining hall. This initiative is seen as a step towards building large-scale infrastructure to support India’s growing electronics manufacturing industry.

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During his visit, Liu also addressed recent allegations of discriminatory hiring practices at Foxconn’s Chennai plant. Reports suggested that married women were being systematically excluded from job opportunities. Liu refuted these claims, stating that Foxconn hires employees regardless of gender and that women, including married women, are a significant part of the workforce. He emphasised the contributions of married women to the company’s success and noted that the trend for hiring at Foxconn is on an upward trajectory.

Foxconn’s focus on creating a sustainable living environment for its employees aligns with its broader commitment to social responsibility. The company has faced scrutiny in the past for its labour practices, and this new initiative in Tamil Nadu is seen as an effort to set a positive precedent for the future.

Foxconn’s expansion in India is not just about scaling up its existing operations but also about tapping into new opportunities in emerging industries. The company is reportedly exploring the possibility of manufacturing iPads in India and entering new product segments such as AI servers and potentially even Google’s Pixel smartphones. Additionally, Foxconn has announced plans to invest $37.2 million in a chip packaging and testing facility in India, in collaboration with IT major HCL Group. This move comes after its joint venture with the Vedanta Group fell through.

Liu’s visit to India, his second in about a year, underscores the increasing importance of India in Foxconn’s global strategy. As Apple seeks to diversify its supply chain away from China, Foxconn’s expansion in India is seen as a crucial component of this shift. The company’s long-term vision for India includes becoming a key player in the country’s growth story, particularly in sectors like semiconductors, ICT, and electric vehicles.

In conclusion, Foxconn’s ambitious plans to expand into new sectors and develop integrated townships in India reflect its commitment to becoming a major player in the country’s industrial and technological landscape. As India continues to grow as a manufacturing hub, Foxconn is positioning itself to capitalise on this growth, with the potential to significantly impact the country’s economy and workforce.