Taiwanese electronics giant Hon Hai Precision Industry Co., also known globally as Foxconn, has received government approval to invest over $2.2 billion in India and the United States, reported Focus Taiwan.
This approval was given by Taiwan’s Ministry of Economic Affairs. Out of the total amount, around $1.49 billion will go to Foxconn’s Singapore subsidiary.
Singapore subsidiary will use the fund to invest in Yuzhan Technology (India) Private Ltd., another Foxconn subsidiary. This investment will help build a new factory in India to produce iPhones and their components.
Experts believe this move is part of Foxconn’s plan to shift some production out of China due to trade tensions with the United States. India is becoming an important hub for making iPhones and their components.
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Foxconn has also been approved to use $735 million to set up a new company in the US called Project ETA (DE) LLC. This new business will focus on making equipment for data centers and assembling servers.
As part of its global expansion, Foxconn has been increasing its presence in countries like the US, India, Mexico, Vietnam, and regions in Europe.
Currently, the company has 223 factories and offices across 24 countries, including 54 in the Americas, 12 in Europe, and 12 in India.
Apart from Foxconn, other companies also received investment approvals. Cathay United Bank, part of Cathay Financial Holding, got permission to invest USD 160 million into its branch in Ho Chi Minh City, Vietnam. This money will support its lending business there.
Additionally, AUO Mobility Solution Corp., a part of AUO Corp., has been allowed to invest USD 20 million in its Xiamen branch in China. This branch makes display parts and other components for vehicles.
Finally, Hong Kong-based Royal Seal Holding Co. got approval to invest about $3.29 million in its Taiwan branch. This branch focuses on cancer treatment. A Taiwanese company, Cowealth Medical Holding Co., is a major shareholder in Royal Seal.
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