Lo0go techturning.com

Foxconn to invest $600 million in India’s Karnataka to make iPhone components, chip equipment

Foxconn to invest $600 million in India’s Karnataka to make iPhone components, chip equipment

BENGALURU, Aug 2 (Reuters) – In a move signaling a strategic shift away from China, Foxconn (2317.TW), the world’s largest contract manufacturer and a key assembler of iPhones, has announced plans to invest $600 million in two major projects in India’s Karnataka state. The investment includes $350 million to establish a facility for manufacturing casing components for iPhones, creating approximately 12,000 job opportunities. Additionally, Foxconn will collaborate with Applied Materials (AMAT.O) in a $250 million venture aimed at manufacturing cutting-edge chip-making equipment.

The investment decisions come amidst Foxconn’s efforts to diversify its production away from China due to disruptions caused by the COVID-19 pandemic and geopolitical tensions. By expanding its presence in India, Foxconn aims to capitalize on the country’s growing market potential and attract favorable incentives from the Indian government. This move aligns with a broader trend of foreign companies, such as Micron and Amazon, making significant investments in India, betting on the nation’s burgeoning consumption and demand.

The expansion plans were announced following a meeting between Foxconn Chairman Young Liu and Karnataka’s IT Minister Priyank Kharge, along with Industries Minister MB Patil. Foxconn’s Chairman Liu expressed enthusiasm about the prospects that Karnataka offers for the company’s expansion initiatives in India.

The investment in Karnataka includes a strategic partnership with Applied Materials to develop semiconductor manufacturing equipment, which is expected to generate around 1,000 employment opportunities. Moreover, Foxconn intends to seek incentives under India’s $10 billion scheme aimed at promoting domestic chip manufacturing. The company is also in discussions with Gujarat state to establish a chipmaking facility in the western region of India.

The move to invest in India’s electronics and semiconductor industry is in line with Prime Minister Narendra Modi’s agenda to boost local manufacturing in these sectors. As India seeks to attract more foreign investment and develop a self-reliant semiconductor ecosystem, Foxconn’s commitment serves as a significant endorsement of India’s growing stature in the global electronics market.

Apart from Karnataka, Foxconn has also confirmed its plans to invest $194 million in Tamil Nadu state for setting up a new electronic components manufacturing facility, generating approximately 6,000 job opportunities. This reaffirms Foxconn’s commitment to expanding its footprint across India and leveraging the nation’s potential as a manufacturing hub.

As Foxconn Chairman Liu has been actively engaging with Indian officials and attending key semiconductor conferences, the company’s investment decisions highlight India’s increasing prominence in the global supply chain and its attractiveness as a destination for high-tech investments.

Foxconn’s $600 million investment in India’s Karnataka and Tamil Nadu states for iPhone component manufacturing and chip-making equipment signals its strategic diversification away from China and underscores India’s growing appeal as a favored destination for foreign investments in the electronics and semiconductor sectors. This move aligns with Prime Minister Modi’s vision of promoting domestic manufacturing and strengthening India’s position in the global technology landscape. As the investments are set to create thousands of job opportunities and contribute to the growth of the Indian economy, they reflect the rising confidence of multinational companies in India’s potential as a key player in the world’s consumer electronics and semiconductor markets.


Related Articles