FOXCONN LOOKS TO EXPAND

Steve Ellis

• Foxconn, Apple Inc.’s largest supplier and assembler of Apple products is looking to make a massive change and provide more lucrative ventures

• The major technology company is looking at manufacturing sites in India at the moment as there is a different labor pool available and will provide a new take on future investments within India

• Terry Gou, Foxconn Chairman was quoted during a news conference in New Delhi saying that, “India is a big, big country. Too many places, too many states, too many cities. The choice is difficult,” when asked about why the company has not decided on a specific location for the new manufacturing

• Foxconn is a major corporation most well known for their assembly of Apple products and being the largest contract electronics manufacturers based on revenue in the world

• India is Asia’s third largest economy and Foxconn looks to grow its own portfolio by tapping into the rich resources

• Foxconn is not just looking for another site to assemble electronics but instead grow and expand their entire supply chain into the country

• Why is Foxconn looking to move into India now though?

• Well Mr. Gou and Foxconn have tried to gain access to India before but to no avail

• Mr. Gou said that India’s labor problems and tax rules were much worse than China’s as a reason for the failed move

• Many other companies have pushed for growth in India and pumped billions of dollars into their foreign infrastructure to create consumer items not yet being masterfully created by the native workforce

• For instance countries like Japan, Taiwan, South Korea are all very successful in various industries including electronics but India has not been able to compete in the creation and production of these products, but instead have excelled at software creation and outsourcing

• With new tax laws in India, paired with plummeting smartphone prices and a sharp increase of smartphone sales, the move into India seems extremely logical

• Mr. Gou and the Foxconn organization are not rushing into India however and are determined to figure out the best possible move

-Steve Ellis

Thank you for viewing my presentation. Please be sure to check back again soon for more updates and

presentations.