Taiwanese electronic manufacturing giant Foxconn will invest $600 million, almost ₹5,000 crore, to set up two manufacturing plants in Karnataka. These plants will manufacture casing components for iPhones and chip-making equipment. On the 2nd of August, the state government announced that Foxconn will establish one of these proposed plants in partnership with US-based semiconductor company Applied Materials.
According to the official statement, Foxconn will invest $350 million, in the first project, for setting up an iPhone component facility, Reuters reported. It is estimated that this plant would generate around 12,000 new jobs.
In the second project, Foxconn will invest $250 million to make semiconductor manufacturing equipment and it will be done in partnership with Applied Materials. This project is expected to generate around 1,000 new job opportunities in the Southern state.
Foxconn Chairman, Liu said, “We are excited about the possibilities that Karnataka offers for our expansion plans in India.”
The Karnataka government stated that it has signed letters of intent for both projects which means that the final modalities of both these projects could change later.
Apart from projects in Karnataka, the Tamil Nadu government also announced that Foxconn will invest around $200 million (₹1600 crore) in a new electronic components manufacturing facility. This plant will create around 6,000 jobs. This investment is being done through Hon Hai Technology Group, a subsidiary of Foxconn.
Speaking about the investment in the state, Tamil Nadu CM Stalin said, “Was delighted to meet the Foxconn Group Chairman Mr.Young Liu and his team. Various investment opportunities in Tamil Nadu were discussed. Investment commitment to establish a mobile component manufacturing facility in Kancheepuram district for Rs 1,600 crore with potential employment for 6,000 persons was signed in my presence.”
According to a report in Reuters, the investment decision comes in the wake of meetings between senior management of Foxconn with officials and concerned Ministers of state governments. Recently, the Indian government held a flagship semiconductor conference which was attended by senior management of many of the renowned semiconductor firms.
Major globally renowned electronic and semiconductor firms including Foxconn have been eyeing to get the maximum benefit of the Central government’s $10 billion Production-Linked incentive (PLI) scheme to promote the chip manufacturing ecosystem in the country.
The Reuters report added that Foxconn is in talks with the Gujarat government as well to set up a chipmaking facility in the western state.