Taiwan’s Foxconn is likely to make fresh investments in Tamil Nadu, where the company already assembles Apple iPhones, in the high-end electronics components manufacturing sector. The new project will be independent of the group's existing units.
The investment will be made by Foxconn Industrial Internet (Fii), the largest subsidiary of Foxconn Technology Company, very soon, highly placed sources told DH.
Foxconn group gave the commitment to the Tamil Nadu government during a meeting between its high-level team led by Brand Cheng, CEO, Fii, and Chief Minister M K Stalin on Wednesday.
“Foxconn has committed to invest more in the state in electronics component manufacturing,” a person aware of the development told DH, without disclosing further details citing “investor sensitivities.”
“The investments will be in the high-end manufacturing sector which includes production of several electronics components,” the source added.
The development comes days after Fii proposed to set up a unit in Karnataka’s Tumakuru near Bengaluru at an estimated cost of Rs 8,800 crore.
A key supplier of Apple, Foxconn is being wooed by Karnataka and Tamil Nadu, among other states, with the Taiwanese electronics major scouting locations for its own semiconductor assembly plant, for which it applied with the Centre after ending its JV with Vedanta.
Foxconn has significant presence in Tamil Nadu with its Sriperumbudur plant assembling high-end iPhone 14, and iPhone 13. The company continues to expand the massive facility, 50 km from Chennai, as Apple Inc plans to move a significant portion of its China operations to India. It is also planning to assemble iPhones in Karnataka and Telangana.
Another source said the new investment is likely to be announced formally “very soon” by both sides after working out further details. The commitment from Foxconn comes two months after global technology giant Cisco chose Chennai for its first India factory which will manufacture switching networks and router platforms.
The second source added that Fii’s commitment augurs well for the state as it is the second company to choose Tamil Nadu for high-end manufacturing within three months.
The development also comes close on the heels of the state emerging as the preferred destination in the country for electronics exports, which stood at $5.4 billion in fiscal year 2013, up from fourth position in fiscal year 2022. Ramping up and launch of production by Foxconn, Pegatron, and home-grown Tata Electronics Private Limited (TEPL) helped the state pip Uttar Pradesh, Karnataka, and Maharashtra, officials said.
The launch of production at Pegatron, which has a factory in Chengalpattu, also helped Apple assemble about seven per cent of its smartphones from India.
The state is already home to 16 major electronics manufacturers, including Nokia, Samsung, Flex, Dell, Motorola, Salcomp, and HP, and wants the electronics industry to be on par with automobiles that accounts to 37.6% of the country's automobile and auto component exports.
The state has two exclusive Special Economic Zones (SEZs) for Electronics and Hardware manufacturing in Sriperumbudur, 50 km from here, and in Oragadam, 70 km from here, spread over 800 acres.