Tamil Nadu signed on Monday an agreement with Taiwan’s Foxconn, the world’s largest electronics manufacturer, to build a manufacturing facility at a proposed investment of Rs 1,600 crore and that will likely employ 6,000 people.
This is the first major investment by Hon Hai Technology Group, as the company is formally known, in India after it parted ways with Vedanta on a $19.5 billion chip-making joint venture. Brand Cheng, chief executive officer (CEO) of the group’s subsidiary Foxconn Industrial Internet (Fii), early this month met with Tamil Nadu Chief Minister M K Stalin and T R B Rajaa, Tamil Nadu’s minister for industries, investment promotion and commerce, about signing a memorandum of understanding (MoU) in July. That month, FII had also proposed to set up a unit in Karnataka’s Tumakuru for Rs 8,800 crore.
“Foxconn’s repeated investments and expansion plans in Tamil Nadu are a testament to the state being the top choice for manufacturing in India for major companies across the world. This is a major achievement for the state,” said Rajaa about the agreement for an electronics components facility.
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Tamil Nadu has had a two-fold increase in electronic exports, from $1.86 billion in 2021-22 to $5.37 billion in 2022-23. The state was ranked fourth as an exporter of electronic goods after Karnataka, Uttar Pradesh and Maharashtra in 2021-22.
“Manufacturers who have seen immense success in Tamil Nadu over the past many years know that by investing more in the state they will only gain more. With this proposed investment, and many more to come, Tamil Nadu is poised to not only remain the top electronics exporter in the country, but also significantly increase its electronics exports in the coming years. This will play a critical role in attaining our Chief Minister’s ambition of a $1 trillion economy in Tamil Nadu,” said Rajaa.
Foxconn entered the Indian market in April 2006, as a manufacturer for Nokia in Chennai. Its subsidiary, FIH Mobile, had established three facilities – two at Sriperumbudur and one at Sunguvarchatram – at that time. After Microsoft acquired Nokia in 2014, Foxconn announced in December 2014 it is winding up operations in Chennai, but it came back later as an Apple manufacturer. The group has around 15 subsidiaries in India.
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After group chairman Young Liu visited India in March this year, Foxconn announced two major investments in Karnataka and Telangana. In late 2022, Foxconn had announced that it will put $500 million in its India units to expand production.
As part of that expansion, the Taiwanese major has acquired 20 acres of land and is building a workers’ hostel near its facility in Tamil Nadu’s Sriperumbudur. Foxconn plans to increase its staff at the facility unit, from 15,000 to around 18,000.
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