Foxconn, the Taiwanese electronics manufacturer, is eyeing the massive potential in India’s market and plans to make significant investments as the electric vehicle (EV) sector grows. According to Liu Young-way, Foxconn’s Chairman, the company sees India as a promising market and has already expanded its manufacturing facilities in the country with several billion dollars in investment. However, he also emphasized that this is just the beginning, indicating further investments in the future.
Although Foxconn recently pulled out of a joint venture with Vedanta to manufacture semiconductors in India, it remains committed to exploring opportunities and intends to apply for incentives under the country’s chip production plan. The company is particularly interested in the growing EV contract manufacturing market and is highly likely to mass-produce electric vehicle batteries at its site in Wisconsin, which has faced some challenges in the past.
Foxconn has been actively diversifying its business, with electric vehicles playing a significant role in its expansion plans. To drive this expansion, the company has hired Jun Seki, a former executive from Nissan, to lead its EV business. Additionally, Foxconn has achieved a substantial market share for GPU modules and substrates within the AI server supply chain. It aims to deepen collaboration with its North American customers, especially in the segment of generative AI applications.
Despite slower demand for smartphones and PCs, Foxconn posted better-than-expected results for the second quarter, with a 1% drop in net profit. This performance exceeded analysts’ forecasts and showcased the company’s resilience. However, Foxconn does anticipate a slight decline in revenue for its smart consumer electronics products, including smartphones, in the third quarter.
Apple’s recent forecast of a sales slump in the coming months has added to concerns within the industry. As Foxconn assembles approximately 70% of iPhones, this announcement has impacted its share price. Nevertheless, Foxconn’s shares have seen a 10% increase this year.
In conclusion, Foxconn sees enormous potential in India’s market and plans to invest significantly as the EV sector expands. The company remains committed to exploring opportunities in chip production and aims to mass-produce electric vehicle batteries. It is diversifying its business and has achieved considerable success within the AI server supply chain. Despite the challenges in the smartphone market, Foxconn’s second-quarter results surpassed expectations. Nevertheless, the company anticipates a slight decline in revenue for the third quarter.
