Indian financial media "Mint" reported that Subhash Desai, Minister of Industry of Maharashtra Government, said: "Maharashtra must skip Foxconn (Hon Hai) as early as possible," which means Hon Hai may not be able to Subhash Desai said that if Hon Hai did not invest, he would be disappointed with the media, but that did not make any difference to the state because there were other foreign direct investment plans coming in.
When the investment plan was announced more than two years ago, it was predicted that Hon Hai might help big client Apple produce iPhone in India, but later became another Wistron foundry in Taiwan, setting up a 4-inch factory near Bengaluru The iPhone SE due to the price of expensive, iPhone in the Indian market to expand slowly, an estimated market share of only 2.5%, far less than the Chinese mainland brand, the first retail store also delayed for many years has not yet opened.
Some people think that Hon Hai's successful acquisition of Japan's Sharp or affect subsequent follow-up investment plan, including non-fulfillment of investment commitments in India.Unified by Sharp into the group, Hon Hai has a strong interest in liquid crystal panels and television investment, in addition to the end of 2016 and Guangzhou Municipal government cooperation in the local investment of 9 billion US dollars to build the latest generation of LCD panel plant, announced last year in the United States invested tens of billions of dollars in Wisconsin, the production of panels and television.
In February, when India's finance minister, Arun Jaitley, announced next year's budget, he said he decided to increase the import duty on smartphones and hold a positive attitude toward the industry and considered it helpful for the government to achieve the goal of "making in India." According to Moneycontrol.com Reported that the Indian government will be from the April 1 fiscal year, the import tariff on smart phones from the current 15% to 20%. In fact, some of the relevant specific parts and accessories, import duties have been previously from 7.5 ~ 10% increase to 15%.
According to another official of the industrial sector, formal negotiations between Hon Hai and the Indian government over the past two and a half years have not yielded any results. If the investment plan has been canceled and it is not wrong, including finding suitable land, labor laws, the Sino-Indian border crisis, As well as its environmental impact, etc. In fact, Tomoko, a unit of Hon Hai, already has a foundry in India to produce smartphones for customers such as Xiaomi, and a third foundry will be added in the future.