BENGALURU: Large and Medium Industries Minister MB Patil on Wednesday said that the Karnataka government and Taiwan-based iPhone maker Foxconn have signed the Letter of Intent (LOI) for two projects with an estimated investment outlay of Rs 5,000 crore expected to generate 13,000 jobs.
The projects are in addition to the iPhone end assembly plant which the Taiwanese company has planned to set up at Devanahalli ITIR, with an investment of about Rs 14,000 crore. Patil said the LoI signing formalities took place in the presence of Foxconn Chairman Young Liu and Karnataka IT/BT Minister Priyank Kharge at a private hotel in Chennai on Monday. He said the intended projects include a phone enclosure project for which Foxconn Industrialist Internet, a Foxconn Subsidiary, invests Rs 3,000 crore ($ 350 mn) that is estimated to create 12,000 employments.
The phone enclosure unit will engage in manufacturing subassembly components for smartphones, specifically mechanical enclosures of iPhones, and the FII is currently evaluating suitable land parcels in and around Bengaluru for the project.
“The other project is the Semicon Equipment Project, wherein Foxconn would invest Rs. 2,000 crore ($ 250 Mn) to take up a project in collaboration with Applied Materials that is likely to generate 1,000 jobs,” the minister said, adding that the LoI outlines the framework for the proposed two projects that Foxconn plans to establish in the state.
The Semicon Equipment Manufacturing project is to establish a production unit for semiconductor manufacturing equipment and the location for the project is likely to be finalised at the Haraluru Muddenahalli - Hi-Tech Aerospace and Defence Park-Phase II in Bengaluru Rural district, where Foxconn has sought a 35-acre plot.