Hon Hai Group has expanded its investment plans in the US and India. The company purchased land and factory in California, USA, while electromechanical equipment was purchased in India. The total cost of these two deals is about 5.28 billion yuan. Experts believe that this could be a step towards increasing iPhone assembly capacity in India.
Hon Hai Group’s global expansion: Big bet on the US and India
Global technology and manufacturing giant Hon Hai Group has expanded its investment portfolio to new heights in the US and India. The company announced on the 15th that its subsidiary Hongbai Technology has purchased land and factory in California, while the Indian subsidiary has purchased electromechanical equipment. The total value of these deals is about 5.28 billion yuan.
Investment in the US
Hon Hai’s US subsidiary, Ingrasys Technology USA, has purchased 26.31 acres of land and a 3,13,700 square feet factory in Sunnyvale, California. The total value of the deal is estimated at US$128 million (about 4.2 billion New Taiwan Dollars). Sunnyvale, which is part of the South Bay Area, is considered a hub of technology and innovation. This investment will further strengthen the company’s US presence and provide a large base to operate new projects.
Expanding iPhone assembly to India?
Hon Hai has purchased electromechanical equipment worth 2.863 billion Indian rupees (about 1.08 billion New Taiwan Dollars) through its Indian subsidiary Foxconn Hon Hai Technology India Mega Development Private Limited. Experts speculate that the move may have been taken to increase iPhone assembly capacity in India.
Foxconn already operates several major plants for iPhone production in India. With the growing demand for smartphones in the Indian market and the ‘Make in India’ campaign, this investment will help the company increase local production.
Expansion of iPhone Production: News related to Apple’s increasing investment in iPhone manufacturing in India has been in the headlines recently. This move by Hon Hai gives another strong indication in this direction.
Grip in the US tech industry: Buying a factory at a strategic location like Sunnyvale will give Hon Hai an opportunity to strengthen its hold in the US technology industry.
This investment by Hon Hai Group indicates further strengthening its position in the global technology market. Buying a factory in the US and efforts to increase production capacity in India will not only stimulate local economies, but will also determine the direction of the company’s long-term growth.
