A Foxconn team led by chairman Young Liu formally signed a letter of intent (LoI) with the government after Industries Minister MB Patil, IT/BT Minister Priyank Kharge, Additional Chief Secretary (IT/BT) EV Ramana Reddy and Industries Commissioner Gunjan Krishna held talks with the team in Chennai on Monday.
ET reported on Tuesday that Foxconn may invest up to $500 million for a new unit near Bengaluru airport to make smartphone accessories.
The chipmaker, through its subsidiary Foxconn Industrial Internet (FII), will invest about $350 million (Rs 3,000 crore) in a sub-assembly components unit. The facility will make mechanical enclosures for iPhones. Once fully commissioned, this unit will employ about 12,000 people.
The proposals are part of the Taiwanese giant’s broader strategy to move away from China to insulate itself from aftershocks of the growing tensions between Washington and Beijing.
Foxconn is collaborating with Applied Materials for the second proposed unit, in which it plans to invest about $250 million, and is expected to add about 1,000 jobs.
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This project is likely to come up at the Haraluru Muddenahalli Hi-Tech Aerospace and Defence Park – Phase II in Bengaluru Rural district, where Foxconn has sought a 35-acre plot.Concerned ministers have pledged support to the project and assured a conducive business environment.
“Karnataka has been at the forefront of promoting innovation and technology and we are delighted to welcome Foxconn’s interest in the state. Our policies are designed to attract investments and create a nurturing ecosystem for companies like Foxconn to flourish,” said IT/BT minister Kharge.
Foxconn chairman Liu said his company was excited about the possibilities that Karnataka offered for the company’s plans in India. “The state’s conducive business environment, coupled with its skilled workforce, makes it an attractive destination for our high-tech ventures. We look forward to building our success story with the state,” he said in a statement.
These units come on top of a $1-billion investment Foxconn is making on a modern iPhone assembly facility at the IT investment region (ITIR) near Bengaluru’s international airport. The transfer of a 300-acre plot at the location is in final stages after which the Taiwanese giant will start building its facility.
The Foxconn firm, FoxSemicon Integrated Technologies, manufactures subassemblies for Applied Materials, the world’s largest semiconductor and display equipment manufacturer. Applied Materials has also recently announced a $400 million investment to set up its Collaborative Engineering centre in India at Bangalore.
