In a significant development for the state of Tamil Nadu, Taiwan-based tech giant Foxconn has signed a deal with the government to invest 16 billion rupees (approximately $194 million) in a new electronic components manufacturing facility. The state government revealed the investment on Monday, stating that the new facility will pave the way for the creation of around 6,000 jobs.
The Foxconn Industrial Internet (FII) facility is set to be constructed in the Kancheepuram district, close to the state capital of Chennai. This new facility will be distinct from the existing sprawling campus in the region where Foxconn currently assembles iPhones for Apple.
Tamil Nadu’s Minister for Industries, TRB Rajaa, hailed the deal as a major achievement for the state. The agreement was reached after Foxconn Chairman Young Liu and other company representatives held meetings with state officials, including the Chief Minister.
At present, Foxconn’s facility near Chennai employs approximately 40,000 workers. However, the company has ambitious plans to significantly expand its workforce at the Tamil Nadu iPhone factory by the end of 2024, aiming to diversify its operations beyond its established base in China.
The new investment aligns with Foxconn’s efforts to capitalize on the growing opportunities in India’s electronics manufacturing sector. Last year, Reuters reported the company’s intention to expand its presence in the region.
In addition to the electronic components facility, Foxconn also inked a research and innovation agreement with the Indian Institute of Technology, Madras, and the state government’s investment arm, Guidance. The collaboration seeks to bring advanced and high-value tech to Tamil Nadu through Foxconn’s presence in the region.
While Foxconn’s subsidiary, FII, produces electronic devices, cloud service equipment, and industrial robots, it remains unclear whether the new plant will manufacture components exclusively for iPhones or other companies as well.
According to Reuters, the target completion date for the new facility is 2024. The investment signifies Foxconn’s confidence in India’s manufacturing potential and its commitment to contributing to the country’s tech ecosystem.
The investment by Foxconn comes on the heels of Chairman Young Liu’s visit to India for the federal government’s semiconductor conference, which concluded on Sunday. The conference provided an opportunity for Foxconn to engage with key stakeholders and explore potential avenues for collaboration and growth in the Indian tech market.
