Chineese officials have been targetting Taiwanese Apple supplier Foxconn as the Company in recent times diversified its manufacturing away from China to India.
According to the state-run Global Times, tax authorities are examining Foxconn subsidiaries in Guangdong and Jiangsu provinces. The same report also mentions that natural resources officials are investigating the utilisation of land in Henan and Hubei provinces by the company.
The details of these investigations and tax assessments remain undisclosed in the Global Times report.
It’s worth noting that Foxconn’s prominent Zhengzhou facility, known as “iPhone City,” is situated in Henan.
Foxconn’s billionaire founder, Terry Gou, recently resigned from the company’s board as part of his campaign to become the president of Taiwan.
At the same time, Foxconn Technology Group, an Apple Inc. partner, has revealed plans to double its investment and employment in India, signaling a growing trend of manufacturing shifting away from China amid rising tensions between Washington and Beijing.
V Lee, a representative of Foxconn in India, shared this development in a LinkedIn post, extending birthday wishes to Prime Minister Narendra Modi.
While specific details were not provided, Lee expressed the company’s intention to expand its presence in India significantly.
Foxconn’s expansion in India highlights the shifting landscape of consumer electronics production, potentially jeopardising China’s status as the world’s largest producer.
Major US brands, including Apple, are diversifying their supply chain, looking beyond their traditional Chinese suppliers to countries like India and Vietnam.
Chairman of Hon Hai, Young Liu, recently reaffirmed Foxconn’s commitment to increasing its investments in India.
The company already operates nine production campuses and over 30 factories in the country, employing a substantial workforce. With an annual revenue of approximately $10 billion generated in India, Foxconn is at the early stages of further expanding its presence in the country.
