Foxconn, a contract electronics manufacturer, has signed a letter of intent (LoI) with the Tamil Nadu government. The purpose is to invest $194 million (INR 1,600 Crores) in constructing a new mobile components manufacturing facility. The facility will be set up in the Kanchipuram district. Foxconn Industrial Internet (Fii), a subsidiary of Foxconn, will operate the proposed facility.
Foxconn Partnership and Job Creation
Foxconn’s Chairman Young Liu and Tamil Nadu Chief Minister MK Stalin, along with state officials, met and decided to invest in a new manufacturing plant.
They signed the Letter of Intent (LoI) with Guidance Tamil Nadu, the state’s investment promotion agency. Tamil Nadu’s Minister for Industries, TRB Rajaa, praised the partnership, emphasizing that Foxconn’s repeated investments highlight Tamil Nadu’s appeal as a preferred manufacturing destination. The upcoming facility will create over 6,000 jobs in the region, contributing to employment growth.
Operational Timeline and Product Focus
The new facility projects to be operational by late 2024. And will be separate from Foxconn’s existing campus near Chennai, where the company assembles Apple iPhones. However, specific details about the mobile components to be produced at the new plant are yet to be disclosed. Foxconn’s subsidiary, Fii, specializes in manufacturing electronic devices, cloud service equipment, and industrial robots.
Tamil Nadu’s Attractive Investment Climate
Tamil Nadu actively seeks Foxconn’s investments. The partnership aims to boost technology in the state’s electronics sector. It aims to enhance electronics exports and move up the value chain. Tamil Nadu aspires to become a $1 trillion economy in the future.
Foxconn Expansion Plans in India
Foxconn decided to expand its presence in Tamil Nadu after leaving a $19 billion semiconductor fab project with Vedanta. The company aims to diversify production beyond China and utilize India’s production-linked incentives (PLIs). Foxconn plans to increase its workforce fourfold at the Chennai iPhone factory, joining other electronics manufacturers in leveraging India’s production potential and incentives.
Global tech giants like Apple, Xiaomi, and Google are increasing production in India, leading to substantial growth and contribution to the country’s economic development in the electronics manufacturing sector.
