Foxconn chooses India over China for new plant
- By Chen Boyuan
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E-mail China.org.cn, August 10, 2015
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The logo of Foxconn. [File photo] |
Foxconn Technology signed a contract with India on Saturday that will allow the Taiwan-based electronics company to launch a new factory in west India's Maharashtra state.
The factory, expected to be operational in five years, will cost Foxconn US$5 billion to build and the company founder and chairman Terry Gou said Foxconn would seek local partners to form a joint venture.
Foxconn's latest India investment represents the leading electronic product maker's intention to profit from the world's fastest expanding market of smartphones. Foxconn, famous for making parts for Apple, will reportedly produce Xiaomi phones in the new factory, a rumor that Foxconn authorities did not clarify or comment on at a press conference on Sunday.
The Foxconn-India deal also shows that India wishes to develop its manufacturing sector, as the rising labor cost in China is forcing away many investments in lower-end and labor-intensive industries.
At the same time, the Chinese government is encouraging its companies to take the opportunities brought by the "Belt and Road" initiatives, and to invest overseas, a move which also helps absorb excessive industrial capacity back home.
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