Published on : Jun 24, 2015
Indian Prime Minister Narendra Modi’s ‘Make in India’ initiative has attracted the attention of many foreign firms and has made India as an attractive alternative to China regarding manufacturing. The latest to join the list of such interested foreign firms are Taiwan-based Foxconn Technology Group and Japanese telecom and internet giant SoftBank Corp. The two companies are in talks to form a joint venture for electronics manufacturing in the country. According to Masayoshi Son, the CEO and the Chairman of SoftBank Corp., Foxconn, which is the largest global electronics manufacturer and the maker of iPhones, will lead the partnership and SoftBank will support it for the same. He further added that specific details are yet to be finalized and will be announced later.
Earlier, Foxconn used to make components and phones for Nokia in India. However, after Nokia’s business closed down, Foxconn too shut down its three manufacturing units in Tamil Nadu. Its last plant inside Nokia SEZ in the state was closed in February this year. The Indian government’s efforts to encourage local manufacturing has attracted a number of smartphone manufacturers such as Micromax, Lava, Karbonn, and Samsung. The investments proposed by these manufacturers are expected to create a large number of jobs as well as raise influx of foreign currency into the Indian economy. Other handset manufacturers such as Motorola, HTC, Xiaomi, and Asus have also shown their interest in locally manufacturing smartphones in India.
Interestingly, Foxconn is the contract manufacturer for these smartphone companies. With the growing consumer base for smartphones in India, the global and Chinese smartphone companies are keenly following the Indian market. According to Terry Gou, the chairman of Foxconn Technology, the company is looking out to expand its manufacturing base in India by establishing data centres and factories by 2020.