Foxconn Denies $194 Mn Investment Deal With Tamil Nadu Govt

SUMMARY

The Tamil Nadu government announced on Monday (July 31) that the tech giant is going to invest $194 Mn to set up manufacturing unit in the state

Foxconn’s subsidiary FII informed media that it did not sign any such deal

However, sources told Reuters that the said unit will be built in the state’s Kanchipuram district

Just a day after the Tamil Nadu government announced a $194 Mn investment to be made by iPhone manufacturing company Foxconn for an electronic components manufacturing facility, the latter reportedly denied the claims.

Foxconn’s subsidiary FII informed Securities Times newspaper that it did not sign any such deal with the Tamil Nadu government.

However, government officials aware of the matter told Reuters that the announced manufacturing unit will be built in the Kanchipuram district near the state capital of Chennai.

The Tamil Nadu government made the announcement on Monday (July 31) and said that this factory would create 6,000 jobs.

This development comes after the Foxconn delegation led by Chairman Young Liu met Tamil Nadu Chief Minister MK Stalin and state officials. Commenting on the move, the state’s Minister for Industries T R B Rajaa said, “Foxconn’s repeated investments and expansion plans in Tamil Nadu are a testament to the state being the top choice for manufacturing in India for major companies across the world. This is a major achievement for the state.”

Reports stated that the said facility would be operational by the end of 2024 but no clarity has been given on what kind of mobile components will be manufactured there. However, it is to be noted that the facility will be dedicated to the operations of FII and it specialises in producing electronic devices, cloud service equipment, and industrial robots.

Meanwhile, the Taiwanese electronics manufacturer is in talks with the Karnataka government to set up a manufacturing plant in the state. Last month, the state announced that the process of land transfer for the unit is almost at the final stage. The facility is expected to start manufacturing iPhones by April 2024.

Adding to this, Foxconn proposed setting up another facility in the state. This development came after a high-level meeting was held between the delegates of Foxconn Industrial Internet (FII) and the state government.

The tech giant has been active about investing in South India, as in May, the Telangana government conducted a groundbreaking ceremony for Foxconn’s $500 Mn manufacturing facility in the Kongara Kalan area. Telangana IT Minister KT Rama Rao took to Twitter to make the announcement and said that the investment would create 25,000 direct jobs.

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