PLI SCHEME:
Indian authorities stated Foxconn Hon Hai Technology India Mega Development has been given the inexperienced mild to obtain about 3.57 billion rupees

A Hon Hai Precision Industry Co (鴻海精密) subsidiary has secured approval for subsidies from Indian authorities for spending and gross sales from its manufacturing base within the nation below the Production Linked Incentive (PLI) scheme, the Indian Press Information Bureau stated in an announcement on Wednesday.

Foxconn Hon Hai Technology India Mega Development Pvt Ltd has been given the inexperienced mild to obtain about 3.57 billion rupees (US$43.1 million) for its spending and gross sales from Aug. 1 final yr to March 21, the bureau stated.

The unit of iPhone assembler Hon Hai, often known as Foxconn Technology Group (富士康科技集團) globally, is the primary international cell phone producer to be granted approval to obtain subsidies below the PLI scheme, the bureau stated.

Photo: Annabelle Chih, Reuters

The PLI scheme was launched by the Indian authorities in April 2020 to spice up the nation’s aggressive edge in electronics manufacturing.

In addition to the Hon Hai unit, Padget Electronics Pvt Ltd, a completely owned unit of Indian electronics maker Dixon Technologies Ltd, has additionally secured 583 million rupees, the assertion stated.

Approval for the subsidy utility filed by the Hon Hai unit and one other by Padget got here from a committee organized by the Indian Ministry of Commerce and Industry’s Department for Promotion of Industry and Internal Trade, the Indian Ministry of Electronics and Information Technology and public coverage suppose tank NITI Aayog, the assertion stated.

In late December final yr, Hon Hai elevated its funding within the Indian subsidiary by US$350 million, which industrial sources stated was aimed toward increasing the unit’s manufacturing at its plant in Chennai to roll out iPhone 13s.

Earlier this month, Hon Hai in a submitting with the Taiwan Stock Exchange stated that it had additional raised funding within the Indian subsidiary by injecting an extra US$500 million, which industrial sources believed can be spent on the Chennai plant to supply iPhone 14s, the newest Apple iPhone collection.

The sources’ feedback echoed Indian information experiences in September that Apple would produce iPhone 14s in Chennai, implying that Hon Hai Precision Industry can be in command of the rollouts at a time when home COVID-19 outbreaks in China have lowered manufacturing from the Chinese operations of the Taiwanese firm and lots of different international entities.

Hon Hai Precision Industry has strong expertise in producing iPhones in India, having manufactured the iPhone XR, the iPhone 11 and iPhone 12 in Chennai, the sources stated.