Foxconn reportedly files claim for India’s mobile phone incentives
As iPhone production and exports surged over the past year, Taiwan-based iPhone manufacturers operating in India quickly requested reimbursement after meeting the incentive targets.
Sources told Businessline that Foxconn and Wistron had filed claims for subsidies under India’s Production Linked Incentive (PLI) scheme for large-scale manufacturing, with Foxconn meeting its production target during the first nine months of fiscal 2023 (April 2022 to March 2023).
Meanwhile, India-based EMS/ODM provider Dixon Technologies also submitted a claim for incentives. Samsung Electronics is still waiting for payment worth about INR5-7 billion from the Indian government for the first and second years of the PLI scheme. According to the report, India’s government will have more meetings with Samsung before paying the South Korea-based technology giant that was the first applicant to meet the subsidy requirements despite the pandemic.
However, the report did not mention why further meetings are required for Samsung to receive the payout. According to earlier Indian reports, the Indian government thought Samsung inflated the invoices to claim higher incentives.
India’s official think tank NITI Aayog approved Foxconn incentives worth INR3.57 billion on December 2022 for Foxconn’s incremental mobile phone investments and sales for the period between August 2021 and March 2022.
According to the India Cellular and Electronics Association (ICEA), India’s electronics exports rose from INR1.16 trillion in fiscal 2022 to INR1.85 trillion in fiscal 2023, with mobile phone exports growing from INR450 billion to INR900 billion for the same period. Apple’s contract manufacturers in India, such as Foxconn and Wistron, were the biggest contributors to the surge in mobile phone exports. According to ICEA, Apple suppliers exported iPhones worth INR450 billion in fiscal 2023. Bloomberg also quoted sources saying India accounted for almost 7% of iPhones worldwide in the last fiscal year.
The Economic Times, citing data from staffing companies including TeamLease, Randstad, Quess, and Ciel HR Services, reported that the mobile phone manufacturing industry is expected to generate 150,000 new jobs in 2023 in India, with Foxconn, Wistron, Pegatron, Tata, Salcomp, Samsung, and Nokia likely to increase employment in the South Asian country