Taiwanese electronics manufacturing giant Foxconn has proposed setting up a new facility in Karnataka, India. The state minister MB Patil announced on Twitter that Foxconn intends to invest INR 8,800 Crores ($1 Billion) in the new plant. The Karnataka government has identified a 100-acre parcel of land in Tumakuru for this purpose.
Positive Reception from State Government
Following a high-level meeting between Foxconn Industrial Internet (FII) delegates and the state government, the proposal gained traction. Chaired by Karnataka Chief Minister Siddaramaiah, the meeting was attended by state IT Minister Priyank Kharge and FII CEO Brand Cheng. The state government has pledged full support and offered the identified land in the Japanese industrial park near Tumakuru to facilitate the establishment of the manufacturing unit.
FII’s Manufacturing Plans
The stakeholders expect the new plant to manufacture screens, outer coverings, and mechanical components required for phones. It will serve as a supplementary plant to the ‘end assembly’ unit at Devanahalli (ITIR). The upcoming facility will generate more than 14,000 jobs in the region, providing a significant boost to employment opportunities.
Foxconn’s Prior Investments in Karnataka
Shortly after confirming the process of transferring land to Foxconn for its proposed plant in the ITIR to be in the final stages, this latest proposal emerges.The upcoming facility, spread across Doddaballapur and Devanahalli taluks, will occupy 300 acres of land. Foxconn plans to invest approximately $1.7 Billion to build the plant on the outskirts of Bengaluru, with plans to begin iPhone manufacturing by April 2024.
Foxconn’s Investment Focus in India
While Foxconn recently pulled out of a $19.5 Billion joint venture with Vedanta to manufacture semiconductors in Gujarat, the company has committed to significant investment plans in India. Earlier this year, Foxconn announced its intention to manufacture electric vehicle components in the country and is investing $500 Million to establish a manufacturing facility in Telangana.
The move by electronics companies like Foxconn to invest in India is influenced by geopolitical tensions between Beijing and Washington. Additionally, the Indian government’s production-linked incentive (PLI) schemes aimed at boosting domestic manufacturing have further incentivized companies to set up production plants in India. As a result, companies such as Apple and Xiaomi have already shifted some of their production capacities to the country.
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