At the peak of the smart phone market, Nokia once operated a giant mobile phone factory in Chennai, India, and produced 100 million mobile phones each year. However, this factory was later closed down. According to the latest news from foreign media, the negotiations between Foxconn and the local government have entered the final phase. Foxconn is expected to restart the mobile phone factory. In 2014, Nokia transferred the mobile phone business to Microsoft at a price of more than US$7 billion. Nokia also abandoned the aforementioned factories in India, causing 15,000 Indian workers to lose their jobs. In 2016, the Foxconn Group signed an agreement with the Indian government of Tamil Nadu, and Foxconn plans to restart the factory. However, the project progressed very slowly. According to the report of the Indian Economic Times website on March 5, Foxconn Group's efforts are achieving some results. Earlier this year, Foxconn had purchased some of the equipment in the mobile phone factory. One dispute that the Chennai mobile phone factory got into was that this factory owes a lot of taxes to Tamil Nadu. According to reports, in the negotiations on this issue, Foxconn and Tamil Nadu have entered the final stage, but it is still not clear when the agreement can be signed. A senior Indian official stated that Foxconn Group is now very urgently restarting this giant mobile phone factory. In India, Foxconn currently owns a mobile phone manufacturing base in Seri, Andhra Pradesh. It employs 6,000 people and manufactures mobile phones for brands such as Xiaomi, Jinli, and Nokia (Nokia’s HMD is currently the operator of the Nokia brand). In recent years, Xiaomi's representative of China's smart phones has been welcomed by consumers in India. In the fourth quarter of last year, Xiaomi surpassed Samsung Electronics as the leader in the Indian mobile phone market. In the top five markets, four are Chinese companies. China's mobile phone brand in India's strategic location has also activated Foxconn's mobile phone foundry business. According to reports, by the end of 2018, Foxconn's mobile phone manufacturing capacity in India had doubled to 30 million. At present, some subsidiaries of Foxconn are looking for suitable locations in India to expand their factories. If the Foxconn Group can prompt the relaunch of the Nokia Chennai plant, it will help its plans to expand the production capacity of mobile phones. In addition, in 2016, Foxconn and the government of Maharashtra signed an agreement, Foxconn committed to invest 5 billion US dollars to build electronic manufacturing bases, but Indian officials recently complained that Foxconn has not honored its investment commitments.
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