Foxconn’s subsidiary selling components to tech giants like Apple and Lenovo – Foxconn Industrial Internet (FII) – is planning to build an operational facility in Tamil Nadu, by next year. FII accounts for about a third Foxconn’s aggregate revenue. The contractual manufacturer from Taiwan is bullish on setting up shop in India as a part of its diversification strategy.
FII CEO Brand Cheng, along with a team of officials, recently met with Tamil Nadu Chief Minister MK Stalin to discuss investment plans around manufacturing various types of components in the state, particularly for smartphones.
Foxconn already has multiple setups in India. For instance, the parent company – Hon Hai Technology – operates significant facilities, including the exclusive iPhone manufacturing, in Tamil Nadu, and Foxconn’s Indian entity, Bharat FIH, operates a separate facility for Xiaomi phones.
The potential investment of USD 200 million would create an even stronger fort for Foxconn in India and generate around 5,000 jobs in the country – making it beneficial for both Foxconn and the Indian economy, as it furthers the country’s ambitions to become a global hub for technology manufacturing.
Few days ago, Cheng and his team also met Bengaluru Chief Minister Siddaramaiah, Industries Minister MB Patil, and IT/BT Minister Priyank Kharge in to discuss their investment plans for Karnataka. It is anticipated that the FII unit, which may be set up in the Japanese Industrial Park in Tumakuru, will operate as an ancillary unit to Foxconn’s main iPhone assembly facility the company has planned near the international airport in Bengaluru, making the smartphone cover and casing as well as other components.
There were reports some time back of Foxconn teaming up with Vedanta to manufacture semiconductor chips in a joint venture Vedanta-Foxconn Semiconductors Ltd, however, they parted ways eventually. Foxconn is now focusing on establishing a presence in high-end electronics component manufacturing in Tamil Nadu, apart from looking for new partners to keep its commitment to India’s semiconductor ecosystem.
