After the crash China’s stock market just barely survived, with billions infused by the communist government, most investors into China are already looking for the next possibility where to continue the unstoppable economic growth. Foxconn, the Taiwan based company that is famous for manufacturing almost all of Apple’s products, besides being the prime outsource for other companies, including the recently resurrected Nokia, or whatever is left of it. Foxconn has already several facilities in mainland China, including the notorious Foxconn city, but just a few days ago they signed a deal that will expand their venture into India.
Foxconn does good work and plenty top rated companies are having Foxconn manufacture devices for them, such as Amazon, Xiaomi and even Blackberry. Bigger demand requires expansion and instead of expanding within China, where they have twelve factories already, they decided that going to India will provide for a better coverage and expansion possibilities. Currently, besides India and China, Foxconn has facilities in Australia, Brazil, several in Europe, in Japan, Malaysia, Mexico, South Korea and even the United States.
It is not surprising that Foxconn has big plans for India, twelve manufacturing plants are in planning, one of which has been commissioned just recently, over 3 billion British Pounds were allocated in a deal with Maharashtra to erect a state-of-the-art manufacturing complex. The full extent of the newly brokered plans to expand into India is as of yet not known, but this recent plant alone will bring jobs for more than fifty thousand people. The whole project, with 12 manufacturing facilities and all workers set in place, shall be finished by the year 2020. Although rumours are persistent, it is yet not decided if the manufacturing of iPhones will be transferred to the new Maharashtra facility.
At this time, Foxconn is employing over a million people worldwide, has an operating income that is almostthree billion dollars, total assets that surpass 50 billion pounds and a revenue that just went over 100 billion quid. It has been estimated that up to 40 per cent of all electronic equipment, predominantly consumer electronics, smartphones, game consoles and similar have parts that were manufactured by Foxconn. The real number may even be higher by now.
Hon Hai Precision Industry Co Ltd, which is the full name of the company behind the trade name Foxconn, is trying to get subsidies and strong assistance by Indian’s Prime Minister, Narendra Modi, who is the key reason why Foxconn decided to give India preferential treatment. His campaign to push India to become the largest economy in Asia, aptly named “Make in India”, has up until this announcement by Foxconn generated next to no responses. After this new Foxconn deal, Foxconn’s leading man Terry Gou expects that other manufacturers and companies follow their lead.
India is considered one of the developing countries with the most potential, after the crash in China and the unwavering Oligarchy has overtaken Russia. South America and Africa are still deemed too risky, particularly Brazil, for instance, has stagnated in development for decades now, with no prospective stabilisation in sight. Ongoing wars throughout Africa are still a very strong deterrent, including the booming poverty and dictator regimes sprouting everywhere. In India, particularly the smartphone market is booming and currently many smartphone and handheld devices manufacturers are considering options on setting better footing within India’s exploding economy.