New Delhi: Foxconn has secured approval from Taiwan’s Ministry of Economic Affairs to invest $2.2 billion in manufacturing projects in India and the United States. The move aligns with the electronics major’s broader effort to diversify production outside China and expand into new tech verticals. Out of the total approved investment, $1.49 billion will be routed through Foxconn Singapore Pte Ltd into Yuzhan Technology (India) Pvt Ltd. The latter operates in India and is engaged in manufacturing smartphone display modules.
The investment supports Foxconn’s ongoing expansion at its Sriperumbudur facility in Tamil Nadu. The plant is a key part of Apple’s supply chain strategy as the US-based company continues to reduce its reliance on China-based assembly. Foxconn’s increased capital commitment also complements India’s Make in India initiative, which aims to boost domestic manufacturing capabilities in electronics and generate employment in the sector.
The second tranche of funding, $735 million will be directed towards setting up a new US-based venture, Project ETA (DE) LLC. This entity will focus on producing data center modules and assembling servers, marking Foxconn’s entry into high-performance computing infrastructure. By expanding into cloud infrastructure hardware, Foxconn is attempting to diversify its portfolio beyond consumer electronics. The move also responds to growing global demand for data storage and processing capacity driven by AI and enterprise digital transformation.
Both investments underline Foxconn’s strategic shift toward regionalizing its supply chain amid geopolitical and economic uncertainties. The company is increasingly pursuing manufacturing hubs outside China in response to ongoing trade tensions and supply chain disruptions. The capital approvals from Taiwan’s economic authorities suggest state-level support for companies scaling operations globally, particularly in key sectors such as electronics and digital infrastructure. Foxconn’s latest investment plans reflect a long-term push to rebalance its manufacturing footprint and cater to demand from North American and South Asian markets.
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