Foxconn signed LOI with Karnataka Government to invest Rs 5,000 crore

Foxconn, a manufacturer of electronics, has signed a Letter of Intent (LOI) with the government of Karnataka to invest Rs 5,000 crore in two projects. This investment is expected to create 13,000 jobs. The company plans to establish two manufacturing projects, with one being a partnership with Applied Materials.

Representatives from the Karnataka government met with Foxconn Chairman Young Liu in a private hotel in Chennai on July 31st and signed a Letter of Intent.

According to the Karnataka Industries department, Foxconn has two projects planned for the state: phone enclosure manufacturing and Semicon equipment manufacturing.   

"Foxconn is setting up a facility for manufacturing subassembly components for smartphones, specifically mechanical enclosures of iPhones. The proposed investment for this project is around $350 million (Rs 3,000 crore) and will generate 12,000 jobs. The company is currently evaluating suitable land parcels in and around Bengaluru" said a statement from the industries department. 

For Semicon equipment manufacturing, Foxconn is associating with Applied Materials. "The proposed investment for this venture amounts to $250 million (Rs 2,000 crore), and it is anticipated to create employment opportunities for around 1,000 individuals", the statement said. 

"FoxSemicon Integrated Technologies manufactures sophisticated subassemblies for Applied Materials, one of the largest semiconductor and display equipment manufacturers. Separately, Applied Materials has recently announced a $400 million setup of its collaborative engineering center in India at Bengaluru that will work with both domestic and global suppliers to drive Semiconductor manufacturing equipment R&D for the next level of innovation and commercialization of technologies", the statement said. 

The location for this project is likely to be finalized at the Haralur Muddenahalli - hi-tech aerospace and defense park-Phase II in Bengaluru rural district, where Foxconn has sought a 35-acre land parcel. 

“The meeting between the Foxconn chairman and the Karnataka government holds immense promise for the economic landscape of the state, with potential benefits in terms of employment generation, technology advancement, and overall socio-economic growth. The LOI between Foxconn and the Karnataka government will boost investments in the State,” Industries Minister MB Patil said. 

“It is a significant opportunity for Foxconn to engage with the Karnataka government and move forward with the establishment of these ventures. The projects will significantly contribute to the state's economic growth and foster employment opportunities for thousands of skilled individuals” he added. 

"Karnataka has been at the forefront of promoting innovation and technology, and we are delighted to welcome Foxconn's interest in the state. Our policies are designed to attract investments and create a nurturing ecosystem for companies like Foxconn to flourish," IT-BT minister Priyank Kharge said. 

Liu said, "We are excited about the possibilities that Karnataka offers for our expansion plans in India. The state's conducive business environment, coupled with its skilled workforce, makes it an attractive destination for our high-tech ventures. We look forward to building our success story with the state."