Foxconn To Invest Rs 600 Mn In Karnataka, Aims To Create 12,000 Jobs

Foxconn, a major producer of electronics in Taiwan, inked a LOI with the Karnataka government to invest Rs 5,000 crore in two projects that have the potential to generate 13,000 jobs. Foxconn will launch two manufacturing projects, one of which will be a collaboration with the American company Applied Materials. On July 31, the Karnataka government officials inked the LOI after meeting Foxconn chairman Young Liu in Chennai. The Haralur Muddenahalli hi-tech aerospace and defence park-Phase II in Bengaluru rural district, where Foxconn is seeking a 35-acre land block, is where this project is most likely to be finalised.

"Foxconn is setting up a facility for manufacturing subassembly components for smartphones, specifically mechanical enclosures of iPhones. The proposed investment for this project is around $350 million (Rs 3,000 crore) and will generate 12,000 jobs. The company is currently evaluating suitable land parcels in and around Bengaluru", a statement from MoneyControl said.

On a project to produce machinery for semiconductor production, Foxconn and Applied Materials are collaborating together. According to the Karnataka Industries Department, Foxconn is considering two projects in the state: the production of Semiconductor equipment and phone enclosures. "The proposed investment for this venture amounts to $250 million (Rs 2,000 crore), and it is anticipated to create employment opportunities for around 1,000 individuals", the statement said.

"FoxSemicon Integrated Technologies manufactures sophisticated subassemblies for Applied Materials, one of the largest semiconductor and display equipment manufacturers. Separately, Applied Materials has recently announced a $400 million setup of its collaborative engineering center in India at Bengaluru that will work with both domestic and global suppliers to drive Semiconductor manufacturing equipment R&D for the next level of innovation and commercialization of technologies", a statement from MoneyControl said.

"The meeting between the Foxconn chairman and the Karnataka government holds immense promise for the economic landscape of the state, with potential benefits in terms of employment generation, technology advancement, and overall socio-economic growth. The LOI between Foxconn and the Karnataka government will boost investments in the State," Industries Minister MB Patil said to MoneyControl.

"It is a significant opportunity for Foxconn to engage with the Karnataka government and move forward with the establishment of these ventures. The projects will significantly contribute to the state's economic growth and foster employment opportunities for thousands of skilled individuals" he added.

"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," IT-BT minister Priyank Kharge said.

Liu said: "We are excited about the possibilities that Karnataka offers for our expansion 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."

"Was delighted to meet the Foxconn Group Chairman Mr. Young Liu and his team. Various investment opportunities in Tamil Nadu were discussed. Investment commitment to establish a mobile component manufacturing facility in Kancheepuram district for ₹1,600 crore, with a potential employment for 6,000 persons, was signed in my presence. We also discussed further investments in electric vehicles (EV) and electronic components. Another milestone in our ambition to make Tamil Nadu the new emerging electronics manufacturing hub of Asia!" Mr. Stalin tweeted.

Karnataka, meanwhile, signed yet another significant agreement with International Battery Company (IBC) on Tuesday. IBC has agreed to invest Rs 8,000 crore ($971.89 million) in the construction of a battery manufacturing facility. According to MB Patil, the state's minister of commerce, industries, and infrastructure, the facility will be sprawled across 100 acres.