Foxconn Technology Group (02038.HK) is looking for manufacturing sites in India to tap into the country’s massive labor pool.
“India is a big, big country. Too many places, too many states, too many cities. The choice is difficult,” the Wall Street Journal quoted Foxconn chairman Terry Gou as saying in a news conference in New Delhi on Tuesday.
Foxconn, the world’s largest contract electronics manufacturer by revenue, hopes to do more in India than simply assemble smartphones and laptops. “We want to bring the whole supply chain here,” Gou said.
Analysts say Foxconn is looking to diversify its global network of factories as the company faces more competition and rising wages in China, where it has most of its manufacturing operations, the newspaper said.
Gou’s positive remarks about India were a clear departure from his previous statements about investing in the country. Not too long ago, he was quoted as saying that India’s labor problems and tax rules were worse than China’s.
His new interest in India may have come because India has taken steps to reform its tax code, which made importing electronic components more expensive than importing the final product, the newspaper said.
Also, demand for smartphones in the country has soared amid falling prices. In the past two years, the number of handsets in India has nearly doubled to 150 million, the report said.
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