Confusion prevails over Foxconn’s plan to set up unit in India

Taiwanese electronics giant, contract manufacturer of Apple smartphones, has written two separate letters to Telangana and Karnataka governments on its plans
The Foxconn logo. (File photo |AP)
The Foxconn logo. (File photo |AP)

NEW DELHI: Confusion still prevails over the plans of iPhone contract manufacturer Foxconn to set up its new manufacturing unit in India. The Taiwanese electronics giant wrote two separate letters to the Telangana and Karnataka governments. In the communication with the Telangana government, it committed to setting up a manufacturing facility in Kongara Kalan.

“I now have a new friend in India and I look forward to working with you in future. As discussed with you during our meeting on March 21, Foxconn is committed to setting up a manufacturing facility in Kongara Kalan and I seek the support of your team in operationalising the Kongara Kalan Park as early as possible,” reads the letter to the Telangana government. 

In another letter to Karnataka Chief Minister Basavaraj Bommai, Foxconn said its team will be in close contact to take forward “Project Elephant”. The company, in the letter to Bommai, said this “Project Elephant” will lay a strong foundation for the company’s other multiple plans, spanning mechanical/ precision machinery, electric vehicle, IC design and semiconductor segments to consider the state as a potential investment destination.

Apple shifted its focus to India after its prime manufacturers and assembling plants in China faced shutdown in 2022 due to the country’s zero-Covid policy. Tension between the US and China is another reason that US technology firms are shifting their base from the world’s second-largest economy to India or Vietnam. Last week, Foxconn Chairman Young Liu visited India.

Following his visit, both the states claimed to have signed a pact with the company to set up Apple’s manufacturing unit in their respective states. However, as per the reports, Foxconn said it has not entered into binding, definitive agreements for new investments during this trip. “Negotiations and internal review are ongoing.

Financial investment sums discussed in the media are not the information being released by Foxconn,” said the company in a statement. A query sent to the company to clear the air remained unanswered at the time of going to the press. Meanwhile, Bommai said in a tweet that the government had signed an agreement with the company for a major investment in the state. 

Foxconn has denied entering into definitive pact
Earlier Foxconn said it has not entered into binding, definitive agreements for new investments during this trip. “Negotiations and internal review are ongoing.”

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