Taiwan’s Foxconn plans further investments in India

Prashasti Awasthi Mumbai | Updated on June 23, 2020

Foxconn, a Taiwanese multinational electronics contract manufacturer, is planning to invest further in India. It is likely to announce the details of the new investment soon, its chairman said on Tuesday, Reuters reported.

India gets its smartphones, including Apple and Xiaomi, from Foxconn. However, the company suspended production in the wake of the coronavirus outbreak.

Chairman Liu Young-way told the company’s annual general meeting that looking ahead, India was a bright spot for development, even though there was a “certain impact” at present due to the virus.

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

Foxconn saw profit plunge to its lowest ever in two decades in January-March after the outbreak forced the firm to suspend manufacturing in China, which knocked demand from customers, including Apple.

But the firm, formally Hon Hai Precision Industry Co Ltd, last month said the worst of the outbreak was over for it.

Liu noted the first-quarter results as a “special case” that reflected the effect of the virus. He said there were no infections at its China plants so it was able to resume operations earlier than expected.

He also said, looking forward, the second wave of global coronavirus infection was a risk to its business.

He hopes that the company would recover by scoring double-digit percentage growth in its revenue in the second quarter. Though it will still likely book a single-digit decline from the same period a year earlier.

Foxconn is best known for assembling Apple’s iPhones, many at its factories in China.

Published on June 23, 2020

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