Foxconn subsidiary proposes to invest Rs 8,800 crore for new Karnataka manufacturing plant

By India Today Business DeskFoxconn Industrial Internet (FII), a subsidiary of iPhone maker Foxconn, has proposed an investment of Rs 8,800 crore to establish a supplementary manufacturing plant in Karnataka, according to the state’s Minister for Large and Medium Industries, M B Patil.

In a tweet, Patil said, Karnataka Welcomes Foxconn Industrial Internet (FII) Company’s Mega Investment (Rs 8,800 crore), Boosting Tech Sector and Job Opportunities (14000-plus).”

During a high-level meeting chaired by Chief Minister Siddaramaiah, Foxconn’s delegates, led by CEO Brand Cheng, presented their investment proposal, said Patil.

The plan entails creating an impressive 14,000 job opportunities and requires approximately 100 acres of land. To assess the available land, the FII delegates will visit Tumakuru, particularly the Japan Industrial Township near the district headquarters town.

Expressing enthusiasm for the investment, Patil affirmed that the Karnataka government is fully supportive and prepared to provide the necessary land for setting up the manufacturing unit.

The 100 acres of land available in the Japanese Industrial Park near Tumakuru has been earmarked for this purpose. The FII, a global leader in network devices for IIoT-based smart manufacturing, aims to revolutionise the tech industry by developing high-quality outer covers for iPhones, he added.

Information Technology Minister Priyank Kharge also attended the meeting, emphasizing the scope of FII’s operations. The FII’s supplementary plant will engage in manufacturing screens, outer coverings, and mechanical components essential for phones. It will complement the existing ‘end assembly’ unit located in Devanahalli (ITIR).

Also Read | Foxconn to apply for India chipmaking incentives after breaking up with Vedanta

The process of providing land to Foxconn for its mobile devices manufacturing unit in Devanahalli ITIR is nearing completion, according to Minister Patil’s statement last week.

The Taiwanese electronics manufacturing giant will be establishing its presence across approximately 300 acres, marking a significant milestone. Patil reiterated the importance of this venture, considering Foxconn’s prestigious reputation as an Apple phone manufacturer.

The initial phase of this project will attract an investment of $1 billion (approximately Rs 8,400 crore) and generate 50,000 employment opportunities.

Foxconn’s recent decision to withdraw from a semiconductor joint venture with Vedanta made headlines. The company clarified that the project, initiated in September of the previous year, was progressing too slowly.

Also Read | Vedanta says it has lined up partners for chip venture after Foxconn backs out

Both sides recognised the challenges and gaps that hindered smooth progress, along with external issues unrelated to the project, prompting the decision to part ways.

In subsequent discussions with the government, Foxconn expressed its interest in establishing multiple semiconductor fabrication lines in India. Further reports suggested that the company was exploring partnership deals with Taiwan Semiconductor Manufacturing Co (TSMC) and Japan’s TMH Group to acquire technology for setting up semiconductor fabrication units in India.

These potential collaborations are poised to bring advanced as well as legacy node chip manufacturing capabilities to the country.