Foxconn’s investment in Karnataka will create around 13,000 jobs in the state.
Taiwanese multinational electronics manufacturer and major supplier of Apple products Foxconn will invest $600 million in two projects in India’s southern Indian state of Karnataka. The company has signed a letter of intent with the Karnataka government to set up a facility for iPhone components and chip-equipment manufacturing in the state.
Out of the total investment, Foxconn will invest about $350 million in setting up a plant for manufacturing iPhone components, and the project is expected to generate 12,000 jobs, Reuters reported. The rest of the $250 million will go towards a project for semiconductor manufacturing equipment, which will create around 1,000 jobs in the state. The electronics contract manufacturer has tied up with U.S.-based Applied Materials for the chip-making tools project.
Calling it a “fruitful collaboration,” Karnataka’s former chief minister Basavaraj S Bommai first informed about Foxconn’s investment plans in February. “We remain committed to welcome the best companies to the state & reap rewards for our people,” the minister said.
Apart from Karnataka, Foxconn has recently signed a deal with the government of Tamil Nadu to invest $194 million for a new electronic component manufacturing facility in the state and investment will create 6,000 jobs in the state. In May, the IT Minister of another southern Indian state Telangana said that Foxconn will invest $500 million that will create 25,000 direct jobs in its first phase.
Foxconn’s investment in India underscores Apple’s shift from manufacturing in China where the country’s stringent zero-Covid policy disrupted the manufacturing of iPhones and other products. The move is also a part of Apple’s broader strategy to diversify its supply chain and reduce dependence on China due to trade tensions between the United States and China, as well as the goal of tapping into the Indian market.
Apart from the South Indian states, Foxconn is also in talks with the Gujarat government over a semiconductor plant. It is noteworthy that news came days after the Taiwanese tech major pulled out from a joint venture with India’s metals-to-oil conglomerate Vedanta to set up semiconductor and display production plants in the western Indian state of Gujarat. The investment was valued at $19.5 billion.
Despite Foxconn’s withdrawal, Vedanta later announced to enter the semiconductor space with the backing of other partners. Foxconn, on the other hand, stated that it remains committed to investing in India and intends to apply to access incentives under the country’s semiconductor manufacturing policy.
