Foxconn on investment spree in India; announces USD 600 mn for Karnataka plants
Foxconn, which assembles 70% of iPhones, is on a spree to move some of its manufacturing operations outside China.
Published: 03rd August 2023 07:37 AM | Last Updated: 03rd August 2023 07:37 AM | A+A A-
Representational image: Foxconn headquarters in the Tucheng District, New Taipei City. (File photo | AFP)
NEW DELHI: In a bid to diversify its operations from China to India, Taiwanese electronic manufacturer Foxconn announced a slew of projects in India in the past few months. Foxconn, the world’s second-largest electronic manufacturing company, on Wednesday, signed a Letter of Intent (LOI) to invest USD 600 million in Karnataka for two projects.
The company will invest around USD350 million to set up an iPhone component facility. For the second project, it has partnered with US-tech-giant Applied Materials in a USD250 million venture to make chip-making tools.
The investment is likely to generate around 12,000 jobs in the state. “We are excited about the possibilities that Karnataka offers for our expansion plans in India,” said Young Liu Foxconn chairman in a statement.
This announcement comes a few days after Foxconn, also known as Hon Hai Technology Group, announced an investment plan in another South Indian state. The company said it will invest Rs 1,600 crore to start its manufacturing facility in Tamil Nadu’s Kanchipuram district. The project is likely to create 6,000 jobs in the state.
Foxconn, which assembles 70% of iPhones, is on a spree to move some of its manufacturing operations outside China. It fears if the relationship between China and the US gets bitter in the future, there may be chances of the US imposing economic and technology sanctions on China.
In March 2023, Foxconn Chairman Young Liu in India committed to setting up a manufacturing facility in Kongara Kalan. The company also acquired a vast plot of land near Devanahalli, close to Bengaluru International Airport.
The company recently called off its partnership with Anil Agarwal-led Vedanta for fab manufacturing in India. Later, it announced that it will apply separately for incentives to manufacture chips in India.
