The largest manufacturer of contract electronics in the world, Foxconn of Taiwan, announced on Thursday that its Singaporean subsidiary had paid $500 million for 4.08 million shares of Foxconn Hon Hai Technology India Mega Development Private Limited.
After Reuters reported last month that Foxconn, an Apple supplier, planned to quadruple the workforce at its iPhone factory in India over the course of two years, two government officials with knowledge of the matter pointed to a production adjustment as it faces disruptions in China as the reason behind the $500 million injection into its India unit.
According to insiders, Foxconn intends to hire 53,000 more workers over the next two years, bringing the total number of employees at its plant in southern India up to 70,000.
According to a government source, the company informed Tamil Nadu officials of its plans to step up hiring at the Indian facility as a result of disruptions in China. Meanwhile, a person in Taiwan with knowledge of the situation claimed that Foxconn was expanding its operations in India to boost its capacity for entry-level models and to satisfy Indian demand.
Foxconn, formerly known as Hon Hai Precision Industry Co Ltd, launched a plant in India in 2019 and has since stepped up output. This year saw the launch of the iPhone 14.
Foxconn announced on Thursday that the factory had relaxed its "closed-loop" management limits. The company made headlines in recent weeks for implementing tight COVID-19 controls at its Zhengzhou production in China, which led to worker dissatisfaction.