Foxconn To Set Up Another Manufacturing Plant In Karnataka With INR 8,800 Cr Investment

Days after the Karnataka government said that the process of land transfer for Apple contract manufacturer Foxconn’s plant was in final stages, the Taiwanese electronics manufacturing giant Foxconn has proposed setting up another facility in the state.

In a tweet, state minister MB Patil said that Foxconn plans to invest INR 8,800 Cr ($1 Bn) in building a new manufacturing plant in the state, adding that the state government has identified a 100-acre parcel of land in Tumakuru for the purpose.

“The state is ready to provide full support, offering land required to set up the manufacturing unit, in the 100 acres of land available in the Japanese industrial park near Tumakuru,” said Patil.

This came after a high-level meeting between the delegates of Foxconn Industrial Internet (FII) and the state government. The meeting, chaired by Karnataka Chief Minister Siddaramiah, was attended by state IT Minister Priyank Kharge and FII CEO Brand Cheng, among others.

As per news agency PTI, the delegates would be taken to examine the identified land at the Japan Industrial Township in Tumakuru.

“FII will engage in manufacturing screens, and outer coverings apart from making mechanical components needed for phones. This would operate as a supplementary plant to the ‘end assembly’ unit at Devanahalli (ITIR),” the minister was cited as saying in the report.

The new plant is expected to create more than 14,000 jobs in the vicinity.

This comes a few days after Patil informed the state assembly that the process of handing over land to the Taiwanese electronics manufacturer for its proposed plant in the ITIR was in the final stages.

The upcoming facility will come up on a 300-acre land spread across Doddaballapur and Devanahalli taluks. Foxconn has earmarked an investment of around $1.7 Bn for building the facility on the outskirts of Bengaluru.

The Karnataka government has pulled all stops to woo the Taiwanese company, including fast-tracking clearance and regulatory approvals. With everything in place, Foxconn plans to begin manufacturing iPhones at the Devanahalli plant by April 2024.

It must be noted that last week, Foxconn pulled out of its $19.5 Bn joint venture with Vedanta to manufacture semiconductors in Gujarat. However, the company has big investment plans for India.

In June, Foxconn, in a statement, said it was looking to manufacture EV components in the country. It is also investing $500 Mn in Telangana to set up a manufacturing facility.

The move is part of the pivot of electronics companies to India on the back of ongoing geopolitical tensions between Beijing and Washington. The Centre’s production linked incentive (PLI) schemes to boost domestic manufacturing have also played a part in these companies setting up manufacturing plants in India. As a result, companies from Apple to Xiaomi have moved some of their production capacities to India.