Foxconn to invest $600 million in Karnataka for iPhone component and semiconductor facilities

economictimes.indiatimes.com:

Hon Hai Technology Group (Foxconn) has signed up with the Karnataka government, offering to invest about $600 million, or nearly Rs 5,000 crore, in two iPhone component manufacturing projects, expected to create nearly 13,000 jobs. A Foxconn team led by chairman Young Liu formally signed a letter of intent (LoI) with the government after Industries Minister MB Patil, IT/BT Minister Priyank Kharge, Additional Chief Secretary (IT/BT) EV Ramana Reddy and Industries Commissioner Gunjan Krishna held talks with the team in Chennai on Monday. ET reported on Tuesday that Foxconn may invest up to $500 million for a new unit near Bengaluru airport to make smartphone accessories.

The chipmaker, through its subsidiary Foxconn Industrial Internet (FII), will invest about $350 million (Rs 3,000 crore) in a sub-assembly components unit. The facility will make mechanical enclosures for iPhones. Once fully commissioned, this unit will employ about 12,000 people.

The proposals are part of the Taiwanese giant’s broader strategy to move away from China to insulate itself from aftershocks of the growing tensions between Washington and Beijing. Foxconn is collaborating with Applied Materials for the second proposed unit, in which it plans to invest about $250 million, and is expected to add about 1,000 jobs. .

This project is likely to come up at the Haraluru Muddenahalli Hi-Tech Aerospace and Defence Park — Phase II in Bengaluru Rural district, where Foxconn has sought a 35-acre plot. Concerned ministers have pledged support to the project and assured a conducive business environment. «Karnataka has been at the forefront of promoting innovation and technology and we are delighted to welcome Foxconn's interest in the state.