In a move of immense significance and with the rising importance of Bengaluru in the global tech manufacturing landscape, Hyvision, a key supplier for giants Apple and Tesla, is set to invest INR 40 crore in establishing a new plant near the Foxconn facility in Bengaluru. This strategic investment shall go toward strengthening the local manufacturing ecosystem along this direction and integrating India a little more into the global supply chains of high-tech firms.
PC: The Economic Times
Hyvision decided to locate its plant near the facility of Foxconn in Bengaluru. This is a well-calculated move to substantially profit from the already existing infrastructure and expertise in the region. Foxconn, Apple’s major supplier, has already acquired a 300-acre plot in Devanahalli located on the outskirts of Bengaluru near the airport—the location will see a major expansion of Foxconn’s manufacturing capabilities. This location is poised to become one for hi-tech manufacturing, with ancillary industries and suppliers like Hyvision beating a beeline to it.
The INR 40-crore investment by Hyvision is also in tune with the increasing foreign direct investment flow into the technology sector in India. It may also generate huge employment opportunities and develop the local economy. With Foxconn likely to start the production of iPhones in its Bengaluru facility by April 2024, Hyvision’s proximity will only add to the supply chain efficiencies and allow for lesser lead times for critical components.
The establishment of Hyvision’s plant will thus be important for the local economy in a number of ways. First, it will represent direct employment, critical to the region. Second, other suppliers and ancillary industries that supply such high-tech industries will undertake investments to stay close to the facility, hence creating an ecosystem to support high-tech manufacturing. This may cause increased clustering effects, resulting in high innovation, spillovers, and overall economic growth.
This investment further falls in line with the Make in India initiative of the Indian government, which is aimed at transforming India into a global manufacturing center. The initiative is to invite international companies and encourage local manufacture, thereby raising India’s contribution towards world output. How much Hyvision’s case of investment corresponds with Foxconn’s expansion is a case of having had huge success with these policies in making India a prime location for high-tech manufacturing investments.
A facility close to the Foxconn complex would, therefore, yield substantial technological and operational synergies for Hyvision. Sited next to one of the biggest and most successful electronics manufacturers in the world, Hyvision would be better placed to work with Foxconn in time-to-market sourcing of quality components and, at the same time, have integration opportunities for supply chain processes to kill connectivity problems and raise the efficiency of production cycles.
These synergies are very important, as in the technology sector, time-to-market and the quality of the product are extremely relevant. Close collaboration with Foxconn will enable Hyvision to meet the exacting standards set by its key customers, such as Apple and Tesla.
The fact that Hyvision is establishing a plant in India is a pointer to the growing stature of India in the global technology manufacturing sector. It is also proof of the confidence global tech giants have in India’s abilities to deliver quality manufacturing solutions. This could be a pointer to change in global supply chain dynamics, whereby companies are trying to diversify bases of manufacture to mitigate the risks of depending too much on a single region.
Moreover, the investment by companies such as Hyvision and Foxconn is sure to attract more investments into the sector, creating a virtuous cycle of growth and development. With more companies coming to set up operations in India, the country is likely to see advancements in technology, increased employment, and a stronger position in the global manufacturing landscape.
Another major development, the plan by Hyvision to invest INR 40 crore in a new plant located near Foxconn’s facility in Bengaluru, has further underlined the region’s stake in the global tech manufacturing ecosystem. It is essentially to bring in an economic benefit spree, technological synergies, and move up India’s position as one of the key players in the global supply chain for high-tech products.
