A Game-Changer in Foxconn's Global Manufacturing: India share in global assets hits 11%

Foxconn has seen remarkable growth in India, with its share of global non-current assets rising from 2.6% in 2022 to 10.8% in 2024, making India its fastest-growing market. India now ranks third globally, surpassing key markets like Taiwan and the U.S., while Foxconn’s reliance on China has declined. Key drivers include India’s booming domestic demand, geopolitical shifts, and large-scale iPhone production. Analysts predict India will soon overtake Vietnam, cementing its role as a critical hub in global electronics manufacturing.

Over the past three years, Taiwanese electronics giant Foxconn, also known as Hon Hai Technology Group, has experienced an unprecedented surge in its Indian operations. The country’s share of the company’s non-current global assets has grown fourfold, marking it as Foxconn’s fastest-growing market worldwide. This growth comes as Foxconn strategically diversifies its manufacturing footprint, reducing its reliance on China.

India’s Rapid Ascent

Foxconn's share of global non-current assets in India was a modest 2.6% in 2022, coinciding with the launch of the production-linked incentive (PLI) scheme for mobile devices. Fast forward to 2024, and this figure has soared to 10.8%. The most dramatic leap came within a single year, where the share more than doubled from 4.5% in 2023 to its current level.

Once outside the top five markets for Foxconn, India now ranks third globally, trailing only China and Vietnam. This remarkable rise has seen India surpass key markets like Taiwan, the United States, and Mexico in terms of asset share.

In stark contrast, Foxconn’s reliance on China has been steadily declining. The company’s share of non-current assets in China fell from 56.8% in 2022 to 49.4% in 2024, reflecting a deliberate shift in strategy.

Understanding Non-Current Assets

Non-current assets, often referred to as fixed or long-term assets, are resources that a company expects to use for more than a year. These include investments in infrastructure, machinery, and facilities, and they typically represent a company’s long-term growth strategies.

The Driving Forces Behind India’s Growth

Foxconn’s expansion in India has been bolstered by its role as the largest vendor assembling Apple’s iPhones in the country, accounting for over 60% of the total production. To support this, Foxconn is also investing heavily in backward integration, manufacturing components critical to its operations with Apple, its most significant global client.

Geopolitical factors have further accelerated this shift. Ongoing tensions between the United States and China have prompted both Apple and Foxconn to diversify their production capacity, with India emerging as a prime beneficiary.

This shift has also led to a decline in Foxconn’s asset share in Taiwan, which fell from 14.4% in 2022 to 7.5% in 2024 — a historic low that places India ahead of Taiwan for the first time.

India vs. Vietnam: A Tight Race

While Vietnam has long been a key player in Foxconn’s global manufacturing strategy as the second-largest phone assembler, its lead over India has significantly narrowed. Vietnam’s head start stemmed from its established role in global production, but India’s large-scale iPhone manufacturing, which began in 2023, has rapidly closed the gap.

Unlike Vietnam, India benefits from a booming domestic market. In 2023-24, India’s smartphone market was valued at a staggering ₹67,000 crore, a demand Vietnam cannot match. Analysts predict that by 2025, with Apple planning to double its production in India, Foxconn’s Indian operations could surpass those in Vietnam, solidifying the country’s position as a key global manufacturing hub.

Foxconn’s growth in India underscores broader shifts in global manufacturing dynamics. With its expanding role in Apple’s supply chain, a supportive policy environment, and a thriving domestic market, India is carving out a significant position in the global electronics ecosystem. As Foxconn continues to reduce its dependence on traditional markets like China and Taiwan, India is poised to play an even more critical role in the company’s future.