Sun, Mar 05, 2006 - Page 11 News List

Hon Hai, Foxconn sign deal to invest in Indian IT park

DPA , TAIPEI

Hon Hai Precision Industry Co (鴻海精密) and its affiliate Foxconn International Holdings Ltd (富士康控股) plan to build an industrial park in southern India to make computers and cell phones, a Chinese-language newspaper reported yesterday.

The Taipei-based Economic Daily News said that Hon Hai president Terry Gou (郭台銘) signed a letter of intent with the Tamil Nadu state government on Friday on building the US$110 million science and technology park over five years in Sriperumbudur, 50km west of the port city of Chennai.

Foxconn spokesman Vincent Tong (童文欣) confirmed the signing of the initial agreement, though he declined to provide details, the paper said.

Phones and computers

Hon Hai and Foxconn plan to build plants in the industrial park to manufacture information technology (IT) products like cellphones, cellphone cases, personal computers, printed circuit boards and electronic connectors and components.

The report did not say when construction will begin and how many jobs it will create in India.

Hon Hai is a world leader in mobile phones, PCs, notebook computers, motherboards and game consoles.

Hong Kong-listed Foxconn is the registered trade name for Hon Hai.

Hon Hai also has production bases in China, Finland, Hungary and Mexico, the report said.

Risks

In recent years, Hon Hai has invested heavily in China.

To reduce the perceived risks associated with investing in China, Hon Hai has long mulled moving into India.

Many Taiwanese companies have moved production to China in recent years. But the government has been urging Taiwanese manufacturers to diversify their investment to other countries, including India.

On Feb. 11, Taiwan set up the semi-official Taiwan-India Cooperation Council to promote trade ties. The Bureau of Foreign Trade, under the Ministry of Economic Affairs, will sent a delegation of Taiwanese manufacturers to India in summer.

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