USD55.3 million capital increase, Hon Hai continues to expand India‘s production capacity

Source: Xinzhixun

    On the evening of December 28th, Hon Hai announced that it would increase its investment in its Indian subsidiary by approximately NT $1.71 billion to continue expanding India‘s production capacity. It is believed that in addition to expanding its production of iPhones for Apple in India, Hon Hai will also produce wearable devices such as AirPods for Apple in India next year. In addition, Hon Hai plans to establish a semiconductor factory in India and continue to expand its layout in India.

    According to the announcement, Foxconn Singapore Pte. Ltd., a subsidiary of Hon Hai, announced that it has acquired shares in Foxconn Precision Engineering Private Limited, totaling 460 million shares at a trading price of INR 10 per share, with a total trading amount of USD 55.2999 million (approximately NT $1.71 billion).

    It is reported that the newly appointed governor of Telangana, India, Rudi, met with representatives of the Hon Hai India team on the 27th and promised to provide all necessary assistance for Hon Hai‘s ongoing investment plan. Ruidi promises to simplify the investment process and make Talangana the largest industrial hub in India.

    Hon Hai did not comment on external reports yesterday.

    Supply chain insiders have stated that due to the newly appointed Governor of the Indian state of Terangana, Reddy, Hon Hai has visited the new governor as usual, hoping to facilitate the construction of the local factory and subsequent operations.

    Previous reports have shown that in March this year, Hon Hai signed an agreement with the government of Talangana to invest $550 million to build an electronic product manufacturing factory, which can create 25000 job opportunities in the next two years, and the entire investment can create 100000 job opportunities. Hon Hai held a groundbreaking ceremony in May this year at its Kongara Kalan industrial park in the state of Talangana, and is expected to begin operations in May next year.

    In April, Hon Hai announced on behalf of its subsidiary Chang Yi Interconnect Technology (India) Private Limited that it had acquired land in Hyderabad, southern India, for a total transaction amount of approximately NT $722 million.