Foxconn to invest $600M in Karnataka for iPhone components, chip-making tools projects
Foxconn, a key Apple supplier, will invest $600 million in two projects in Karnataka for chip-equipment manufacturing and casing components for iPhones, the southern Indian state said Wednesday.
The Taiwanese company signed a letter of intent with the Karnataka government on Wednesday. Foxconn said it will invest about $350 million in setting up a plant in the state for manufacturing iPhone case components and about $250 million on a project for semiconductor manufacturing equipment.
“The industrial and investment policies of the state government are conducive to nurturing an ecosystem favouring the growth of industries. The talks held with the company chairman were fruitful,” said MB Patil, Karnataka Minister of Infrastructure Development, in a statement.
Foxconn said the projects will create 13,000 jobs in the state. The firm has partnered with Applied Materials on the semiconductor manufacturing project.
Wednesday’s announcement follows Foxconn signing a deal with the state of Tamil Nadu on Monday to invest about $194 million in a new electronic components manufacturing facility.
Scores of global manufacturers and suppliers have expanded their presence in India as Prime Minister Narendra Modi offers incentives to make India the global semiconductor and hardware manufacturing hub. The past two years saw India unveil considerable production-linked incentives to attract investment in critical sectors, from electronics to automobiles and solar energy.
In recent weeks, the U.S. memory chip firm Micron also announced plans to invest up to $825 million to build a semiconductor plant in India. Apple has also accelerated production of its iPhone 14 lineup in the country. But there are also some concerns.
A multibillion-dollar venture between Foxconn and Indian conglomerate Vedanta ended last month. Indian officials blamed “internal issues” between the firms for the discontinuation of the joint venture and said the development will not impact India’s semiconductor goals. Foxconn has since said that it remains committed to India and will apply to avail the incentives.
More to follow.