Taiwan’s Foxconn Eyes Further India Investment, Sees Bright Outlook There

June 23, 2020 Updated: June 23, 2020

TAIPEI, Taiwan—Foxconn is planning further investment in India and may announce details in the next few months as the world’s largest contract manufacturer views the outlook there very favorably, the company’s chairman said on June 23.

While Foxconn already makes smartphones in India for Apple Inc. and Xiaomi Corp., in March, the Taiwan-based company said it suspended production due to the outbreak of CCP (Chinese Communist Party) virus, commonly known as novel coronavirus.

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

“We are fully pushing ahead with 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 further investment there,” Liu said, without detailing plans or reasons for the firm’s view on the business outlook in India.

Foxconn’s January-March profit plunged to its lowest in two decades after the outbreak forced the firm to suspend manufacturing in China and knocked demand from customers including Apple.

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

Liu described 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 it expected.

Foxconn is seeking to make up virus-related losses at its China plants with “resources” from customers and local governments. Liu didn’t elaborate, apart from saying such activity would take place gradually over several quarters.

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

For the second quarter, Foxconn has said it expects revenue to show double-digit percentage growth versus January-March, although 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.

By Roger Tung and Ben Blanchard. Epoch Times staff contributed to this report.