Foxconn Receives Board Nod To Invest Additional $400 Mn In Telangana

Contract electronics manufacturer Foxconn has announced an additional investment of $400 Mn in Telangana. This comes right after the board of Apple’s contract vendor approved the proposal to ramp up investments in the state. 

“…FIT Singapore’s proposal to make a capital injection of US$ 400,000,000 to Chang Yi Interconnect Technology (India) Private Limited, which is held by FIT Singapore as to 99.99 per cent of the capital stock,” noted FIT Hon Teng’s regulatory filings with the Hong Kong Stock Exchange on Friday (August 11).

Meanwhile, Foxconn India representative V Lee took to X (formerly Twitter) to make the announcement saying, “Moving so fast, Telangana! Another $400 Mn is coming.” 

Reacting to the tweet, Telangana IT and Industries Minister KT Rama Rao said that the state’s partnership with the Foxconn Group continues to remain ‘steadfast.’

“Our friendship with Foxconn Group remains steadfast, each of us delivering on mutual commitments. With total infusement of $550 Mn (adding previous $150 Mn), FIT is poised to deliver on its promises in Telangana. This once again proves Telangana Speed,” said Rao. 

It could not be immediately ascertained how the funds would be utilised, apart from being diverted to the state. 

The new investment proposal is in line with Foxconn’s recent focus on building and incubating facilities in southern India. A host of states in the southern part of the country have been rolling out red carpets for the contract manufacturing giant as they look to create jobs and spur investments. 

The potential investment comes barely three months after Foxconn commenced the construction of its $500 Mn manufacturing facility in Telangana’s Kongar Kalaan in May this year. Last month, a delegation of Fii, headed by CEO Brand Cheng, also met Tamil Nadu Chief Minister MK Stalin to discuss plans to set up a facility in the state. 

Meanwhile, the company denied claims of $194 Mn investment in Tamil Nadu but shied away from commenting on reports of plans to set up a manufacturing unit in the state by next year.

On the other hand, Karnataka continues to be the firm’s favourite destination. While its plans to set up a $1 Bn manufacturing plant are in full throttle, Foxconn is also mulling establishing another plant in the state. 

While production of iPhones continues to be the top priority of the company in the country, Foxconn is also looking at India as a prospective destination for EV component manufacturing. In addition, Foxconn’s Mobility in Harmony (MIH) CEO Jack Cheng, earlier this month, also hinted at this saying that India showed high opportunities for EV business.