A subsidiary of Foxconn, the prominent Taiwanese electronics manufacturing giant, is reportedly considering a significant investment of up to $200 million to establish an electronic components plant in Chennai, Tamil Nadu. According to Reports, Foxconn Industrial Internet (FII) CEO Brand Cheng and other company representatives recently met with Tamil Nadu Chief Minister MK Stalin and government officials to discuss the potential investment in the southern state.
FII has presented a plan to state officials outlining an initial investment of $180 million to $200 million for the facility, with the aim of completing the plant by 2024 and considering further investments thereafter. However, a final decision on the matter is yet to be made.
Foxconn Industrial Internet is known for manufacturing communication, mobile network, and cloud computing equipment. Additionally, Foxconn already has an extensive campus near Chennai where it assembles Apple’s iPhones.
Apart from Tamil Nadu, the Karnataka state government in south India has also engaged in discussions with FII, where the company expressed commitment to invest $1.07 billion for another new plant.
Furthermore, Foxconn is exploring opportunities in India’s semiconductor sector and is in talks with the Gujarat state government for potential entry into this area. On the occasion of the Semicon India 2023 event in Gandhinagar on July 28, Prime Minister Narendra Modi and Foxconn Chairman Young Liu are scheduled to be present. India aims to establish itself as a semiconductor manufacturing hub, with the local market’s value projected to reach $80 billion by 2028, four times its current size of $23 billion.
India Becoming a Semiconductor Manufacturing Hub:
In the past, the Indian government announced a $10 billion scheme to promote domestic chip manufacturing, attracting interest from companies like Foxconn and local conglomerate Vedanta Ltd. However, none of these proposals has materialized thus far. It’s worth noting that Foxconn recently backed out of a $19.5 billion chips joint venture with Vedanta, citing delays in the project’s progress. The company now plans to apply separately for setting up a semiconductor unit in India.