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BENGALURU: The Karnataka government and Taiwanese iPhone maker Foxconn on Friday signed a letter of intent to establish a major facility in Bengaluru. The electronics manufacturing plant is expected to come up on a 300-acre site near the Bengaluru international airport. Sources in the government said the total investment will be more than $500 million, and may even exceed $1 billion over time. The letter of intent said the proposed investment would happen between 2023 and 2027, and that the project would employ about 1 lakh people.
The proposed Karnataka investment is part of a major effort by Foxconn, one of the world’s largest assemblers of Apple products, to move some of its manufacturing out of China, as relations between the US and China deteriorate. India is increasingly becoming a favoured alternative destination. Foxconn already has a facility in Tamil Nadu that makes Apple products. Last year, the company, together with Anil Agarwal’s Vedanta, announced plans to establish a display fabrication and semiconductor facility in Gujarat. On Thursday, Telangana IT minister KT Rama Rao said Foxconn plans to establish an electronics manufacturing facility in the state that will employ 1 lakh people.
It is expected that the Bengaluru plant will also make Apple products. This would make it the second facility in Karnataka to make these products. Wistron, another Taiwanese company, has a plant in Kolar that has been manufacturing iPhones for the last five years.
The fresh investment is good news for Karnataka’s BJP government, coming as it does just ahead of the next state elections, expected in May.
The state industries department in a release said that a 16-member team from Hon Hai Technology Group (Foxconn), led by the company’s CEO & chairman Young Liu, came to Bengaluru on Friday for inspection of the proposed area, and to have talks with the government.
Quoting reports, Union minister of state for information technology Rajeev Chandrasekar tweeted: “Apple phones to be built in a new 300 acre factory in #Karnataka. Double Engine Sarkar of PM Narendra Modi ji and chief minister Basavaraj Bommai working to create investments and jobs and 1 Trillion Dollar Economy for Karnataka.”
The same was then followed up by chief minister Basavaraj Bommai, who reiterated the “double engine” poll pitch. “Apple phones to be built in the state soon. Apart from creating about 100,000 jobs, it will create a whole lot of opportunities for Karnataka. Under the visionary leadership of Hon’ble PM Narendra Modi Ji, we will do our share to make India a $5 trillion economy by 2025,” Bommai tweeted.
The Foxconn team to Bengaluru on Friday held meetings with state IT-BT minister C N Ashwath Narayan and industries minister Murugesh Nirani. The team was hosted for dinner by Bommai.
Foxconn had total revenue exceeding 6 trillion Taiwanese dollars in 2022 and ranked 20 in the Fortune Global 500.
The proposed Karnataka investment is part of a major effort by Foxconn, one of the world’s largest assemblers of Apple products, to move some of its manufacturing out of China, as relations between the US and China deteriorate. India is increasingly becoming a favoured alternative destination. Foxconn already has a facility in Tamil Nadu that makes Apple products. Last year, the company, together with Anil Agarwal’s Vedanta, announced plans to establish a display fabrication and semiconductor facility in Gujarat. On Thursday, Telangana IT minister KT Rama Rao said Foxconn plans to establish an electronics manufacturing facility in the state that will employ 1 lakh people.
It is expected that the Bengaluru plant will also make Apple products. This would make it the second facility in Karnataka to make these products. Wistron, another Taiwanese company, has a plant in Kolar that has been manufacturing iPhones for the last five years.
The fresh investment is good news for Karnataka’s BJP government, coming as it does just ahead of the next state elections, expected in May.
The state industries department in a release said that a 16-member team from Hon Hai Technology Group (Foxconn), led by the company’s CEO & chairman Young Liu, came to Bengaluru on Friday for inspection of the proposed area, and to have talks with the government.
Quoting reports, Union minister of state for information technology Rajeev Chandrasekar tweeted: “Apple phones to be built in a new 300 acre factory in #Karnataka. Double Engine Sarkar of PM Narendra Modi ji and chief minister Basavaraj Bommai working to create investments and jobs and 1 Trillion Dollar Economy for Karnataka.”
The same was then followed up by chief minister Basavaraj Bommai, who reiterated the “double engine” poll pitch. “Apple phones to be built in the state soon. Apart from creating about 100,000 jobs, it will create a whole lot of opportunities for Karnataka. Under the visionary leadership of Hon’ble PM Narendra Modi Ji, we will do our share to make India a $5 trillion economy by 2025,” Bommai tweeted.
The Foxconn team to Bengaluru on Friday held meetings with state IT-BT minister C N Ashwath Narayan and industries minister Murugesh Nirani. The team was hosted for dinner by Bommai.
Foxconn had total revenue exceeding 6 trillion Taiwanese dollars in 2022 and ranked 20 in the Fortune Global 500.
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