In separate letters to Karnataka chief minister Basavaraj Bommai and Telangana chief minister K Chandrashekar Rao, Foxconn chairman Young Liu said he will “ensure successful grounding of the ‘Project Elephant’ in Bengaluru” while underscoring the its commitment to setting up a manufacturing facility in Kongara Kalan in Telangana.
The two letters sought to clear any air of confusion after the company’s statement on Saturday suggested that last week’s agreement were not “definitive” in nature.
“I am confident this project will lay a strong foundation for our other multiple plans, spanning mechanical/precision machinery, electric vehicle, IC Design & semiconductor segments to consider your state as a potential investment destination,” Liu said in his letter to Bommai.
In another letter to Rao, he said Foxconn was committed to setting up a manufacturing facility in Kongara Kalan.
“I seek the support of your team in operationalising the Kongara Kalan Park as early as possible. I was indeed inspired by your vision and the efforts towards transformation and development of Telangana,” the letter read.
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He acknowledged that IT/BT minister CN Ashwath Narayan, industries minister Murugesh R Nirani, chief secretary Vandita Sharma and other top officials received the Foxconn team in Bengaluru and facilitated various meetings and his visits to the T2 of the international airport. “The efficiency of cargo handling at the airport does have a significant bearing on our operations and metrics as we rely on air freight for our multiple products to a considerable extent,” he said referring to the Bengaluru airport.
“It was great to note the infrastructure readiness timelines, the government of Karnataka’s support for skilling and talent acquisition, and the availability of social infrastructure around plot earmarked for the project,” Liu added.
The Taiwan-based world’s-biggest contract manufacturer proposed to set up an electronics manufacturing and assembly unit on the outskirts of Bengaluru where it is expected to produce Apple iPhones.
The new plant will come up on a 300-acre plot near the Bengaluru international airport and will be Foxconn’s largest unit in India. It is expected to generate 100,000 direct and indirect jobs over the next 10 years.
The government and Foxconn did not reveal the projected investment for the facility, but people briefed on the project put it at nearly $1 billion.
Bommai’s government has been marketing the state as a key destination for investment in electronics system design & manufacturing (ESDM).
There are reports that besides iPhones and its components, the Taiwanese firm is also likely to manufacture other electronic items and EV parts at the proposed plant.
Currently, Foxconn manufactures iPhones at its facilities in Tamil Nadu, Andhra Pradesh and Telangana.
Officials believe an investment by Foxconn would help Karnataka attract other global electronics companies to the state.
Foxconn’s increased India push is triggered by strong domestic demand for iPhones as well as a surge in exports from India led by the diversification of global supply chains away from China.
Last year Foxconn announced an infusion of $500 million into its India unit Hon Hai Technology India Mega Development.
