The American company, Amazon, announced that it will start manufacturing its TV broadcast device in India this year through a unit of Taiwan’s Foxconn.
The Fire TV Stick will be manufactured by Foxconn’s Cloud Network Technology in southern Chennai, marking Amazon’s first attempt to make one of its devices in India.
Amazon said that hundreds of thousands of Fire TV Stick devices will be produced annually, which will help it fulfill the demands of Indian customers.
“Amazon will continually assess the expansion potential of additional markets/cities based on local demand,” the company said in a blog post.
Communications Corporation Jio
After the launch of Reliance Group’s telecom company, Jio, headed by Indian billionaire Mukesh Ambani in 2016, the value of internet services has plummeted in India, helping the growth of video and audio streaming services such as Amazon Prime Video and Netflix.
During the lockdown measures imposed by COVID-19, Ambani raised more than $ 20 billion by selling a third of Jio to a group of investors, such as Facebook, Google, TPG, L Catterton, Silver Lake Partners, Vista Equity Partners, eneral Atlantic, KKR, Mubadala Investment, the Saudi Public Investment Fund and the Abu Dhabi Investment Authority. Forbes currently estimates Ambani’s net worth at $ 720 Million.
Taiwanese Foxconn is the largest electronics manufacturer in the world, and the company has succeeded in increasing its sales of electronic gadgets (especially related to remote work) over the past year, after many employees around the world were forced to work from home to curb the spread of the Covid-19 virus.
The company exceeded analysts’ expectations and posted a net profit of $ 1.08 billion from July to September, according to Reuters calculations.
Analysts had expected Foxconn to earn only $ 891 million.
The company did not explain the reasons behind these profits, which amounted to $ 1.07 billion in the same period of the previous year.
India turned into an electronics hub
Amazon’s move to Seattle, Washington, to make the device in India coincides with Prime Minister Narendra Modi’s grand strategy to make the country a center for manufacturing electronics to compete with other Asian countries like China and Taiwan, and create jobs.
New Delhi’s local manufacturing effort has attracted iPhone manufacturers such as Foxconn and Wistron to expand into India, along with large Taiwanese contract manufacturer Pegatron that recently set up a unit in the country.