Foxconn, the Taiwanese manufacturer of Apple and Xiaomi smartphones as well as Samsung tablets, plans to spend $5 billion on new factories and development in the Indian state of Maharashtra.
Maharashtra will provide 1,500 acres of land for Foxconn on which facilities will be constructed over the next 5 years. Foxconn says that the development will provide 50,000 jobs, short of the "million job opportunities" it promised in July:
India was chosen for an R&D role because of the skills of local workers, but the move to India is motivated by other factors too. One is undoubtedly the "Make in India" policy India's government is using to lure manufacturers to the nation and to improve local manufacturing practices. Make in India is both an economic development policy and a way for India to point out that there are easy ways to access its growing domestic market.
Wage growth in China may be another factor in Foxconn's thinking, as may China's increasing preference for joint ventures on its soil. Beijing's military posturing in the South China Sea also has diplomatic types pondering the wisdom of having all one's manufacturing eggs in a Middle Kingdom basket. Indian facilities may be a few more sea-days from the USA, but aren't horribly out of the way.
Previously: Foxconn to Hire 1 Million People in India by 2020
(Score: 0) by Anonymous Coward on Monday August 10 2015, @03:57PM
let's hope foxcoonh [sic] will start making affordable grid-tied solar micro-inverters too, so the millions of indians without electricity can charge their new internet connected .. gadgets!
(Score: 0) by Anonymous Coward on Monday August 10 2015, @06:56PM
More than likely Foxconn will build their own power-plants to provide uninterrupted and dependable power to the production facilities. This will probably have an effect on the local grid.