Apple supplier Foxconn eyes further investment in India, sees bright outlook there

Foxconn chairman Liu Young-way expects to reveal the Taiwanese firm’s proposed new investments in India ‘in a few months’ time’
The company, which makes most of the world’s iPhones, expects to post a double-digit percentage growth in revenue in the June quarter, compared with the March quarter

Foxconn

Reuters

Published: 8:47pm, 23 Jun 2020

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Foxconn Technology Group is planning further investment in India and may release details in the next few months, as the world’s largest electronics contract manufacturer views the outlook there very favourably, the company’s chairman said on Tuesday.

Formally known as Hon Hai Precision Industry, Foxconn already makes smartphones in India for Apple and Xiaomi Corp. The Taiwanese company, however, said in March that production there was suspended because of the coronavirus pandemic.

Foxconn chairman Liu Young-way told the company’s annual general meeting that India was a bright spot for development even though there was a “certain impact” at present owing to the Covid-19 crisis.

“We are fully pushing ahead with next steps there, and maybe in a few months’ time we can reveal on our website the next steps and report back to everyone,” Liu said. “We’ll have further investment there,” he added, without detailing plans or reasons for the firm’s view on the business outlook in India.

Liu Young-way, chairman of Hon Hai Precision Industry, speaks during the company's annual general meeting in New Taipei City, Taiwan, on June 23. Photo: Bloomberg

Foxconn’s profit in the March quarter plunged to its lowest in two decades after the outbreak forced the firm to suspend manufacturing in mainland China and knocked demand from customers, including Apple.

Still, the Taipei-based company said last month that the worst of the outbreak was over for its business.

Liu described the first-quarter results as a “special case” that reflected the effect of the coronavirus outbreak. He said there were no infections at the company’s plants on the mainland, so it was able to resume operations earlier than it expected.

Foxconn is seeking to make up for its coronavirus-related losses at its China plants with “resources” from customers and local governments. Liu did not elaborate, apart from saying such activity would take place gradually over several quarters.

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He indicated that a second wave of global coronavirus infections was a risk to its business.

For the second quarter, Foxconn has said it expects revenue to show double-digit percentage growth, compared with the previous quarter. The company, which has most of its factories on the mainland, said it will still likely book a single-digit decline from the same period a year earlier.

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