The facility in southern India will shut down at end-December, it said, but did not give details about the changes in the customer base.
"This action is also related to a restructuring being carried out of our India operations," according to the statement from FIH Mobile Ltd, a mobile-product arm of Hon Hai, which assembles products for clients like Apple Inc at factories predominantly in China.
The factory in India currently employs 1,700 workers, the company said.
Hon Hai, which employs over 1 million people worldwide and is best known by its trade name Foxconn, has been attempting to diversify into new industries, investing in a 4G network in its native Taiwan and a South Korean IT services provider.
It reported a 12.9 percent rise in revenue in November, traditionally a high season as it reaps the benefits of key clients' holiday gadget sales.
Kylie Huang, a Taipei-based analyst with Daiwa-Cathay Capital Markets, said the shutdown also reflects Hon Hai's redeployment of resources toward fast-growing local Indian tech brands like Micromax Informatics Ltd.
"This is a long-term move on FIH's part," Huang said.
Edited by NDTV staff from original story by Reuters