Foxconn, the Taiwanese company that manufactures products on contracts is set to invest $5 billion in India. It is the world’s largest electronics contract manufacturer with notable customers such as Apple, Microsoft, Dell, Google, and Sony.
Foxconn official told Times of India, that import duties on mobile phones are discouraging brands to source devices from other countries. At the same time, the government is offering tax benefits for companies that opt for local manufacturing. Nodding to the government’s make in India initiative, Foxconn chairman & CEO Terry Gou has already committed more investments in India during his visit. Major investment would be for setting up of a display fab.
The company will invest millions of dollars to set up CNC (Computer Numerical Control) milling machines. These are essential for manufacturing classy metal phones. Foxconn will also manufacture lithium-ion batteries and PCBs (Printed Circuit Board) locally. Needless to say, the investment will boost the jobs creation in India. Economy too will benefit. However, considering how China’s soil has been destroyed by too many manufacturing plants, India better be cautious about these things.