Hon Hai in talks with Indian firm to make low-end cell phones: report

Taipei, July 24 (CNA) Taiwan-based manufacturing giant Hon Hai Precision Industry Co. (鴻海) is in talks with a major industrial group in India to roll out low-end mobile phones in the South Asian country, according to an Indian media report.

On its website, the Economic Times, an Indian daily newspaper, reported over the weekend that Hon Hai, also known as Foxconn outside Taiwan, has entered into negotiations with India's Reliance Industries Ltd. (RIL) to make low-priced cell phones under Indian Prime Minister Narendra Modi's ambitious "Make in India" initiatives.

The report said that Reliance Jio Infocomm, the telecom arm of RIL, is planning to launch dual SIM cell phones with a price tag from US$23-US$25.

The report added that the mobile phones planned by Reliance Jio Infocomm will be equipped with 2G and 4G SIM card slots and are expected to use chips designed by China's fabless smartphone design house Spreadtrum Communications Inc. (展訊).

Reliance Jio Infocomm is owned by Mukesh Ambani, the richest man in India.

The report showed Hon Hai's ambitions to increase its production empire in fast growing India as part of a strategy of global expansion.

According to the Times of India, another major news media in the South Asian country, Hon Hai is investing US$5 billion in India to better enable the country to churn out products targeting the U.S. and European markets.

The Times of India said that existing factories operated by Hon Hai are rolling out cell phones under the InFocus nrand, which is owned by the Taiwanese manufacturer, together with China's OPPO, Xiaomi (小米) and Gionee (金立).

The Economic Times also reported in late June that InFocus is seeking to become one of the top five brands in India within three years.

InFocus is planning to invest US$10 million in India and hopes to sell 6 million handsets in its first year on its way to becoming one of the top five brands there in three years.

Hon Hai has embarked on a project to establish 10-12 facilities in India by 2020 as part of the company's efforts to extend its global reach in electronics manufacturing, while seeking partners to invest in a wide range of businesses such as e-commerce, mobile Internet services and renewable energy.

Currently, Hon Hai operates a broad production base in China with a workforce of about 1 million, while the world's largest contract electronics maker is also planning to extend its investments in the U.S. market.

(By Jalen Chung and Frances Huang)enditem/AW