Hon Hai Precision Industry Expands Operations in Vietnam and Considers Major Expansion in India to Diversify Production Outside of China

According to the Taiwan Economic Daily News, Hon Hai Precision Industry Co. (Foxconn) has increased its investment in two Vietnamese subsidiaries by a total of $60 million USD. This move is believed to be primarily aimed at meeting the operational funding requirements of its production of Information and Communication Technology (ICT) products. As Hon Hai continues to expand its operations, Vietnam has become the second largest production base after mainland China.

Hon Hai has announced that its Vietnamese subsidiary, Fuhong Precision Component, has acquired the equity of Fuyu Precision Component Co., Ltd. for $30 million USD, primarily for cash increase and long-term investment purposes. Its other Vietnamese subsidiary, Funing Precision Component, has also acquired the equity of Fuyu Precision Component for $30 million USD.

In mid-February, Hon Hai announced that it had spent about 14.8 trillion Vietnamese dong (approximately RMB 483 million) to acquire land in Bac Giang Province, Vietnam. In addition to expanding its operations in Vietnam, insiders say that Hon Hai is considering a major expansion in India, including setting up new factories and increasing the number of iPhones assembled there, further accelerating production diversification outside of mainland China. Insiders say that Hon Hai plans to increase its annual production of iPhones assembled in India to 20 million units by 2024, with its workforce doubling to 100,000.

It's important to note that Hon Hai's expansion and investment in its subsidiaries in Vietnam and India may impact the availability and pricing of certain electronic components in the future.