World’s largest technology manufacturer and Apple’s supplier Foxconn to invest USD 500 million to set up manufacturing plant in Telangana, India. Telangana’s Minster of Industries and Commerce KT Rama Rao announced that the groundbreaking ceremony for Foxconn’s first manufacturing plant in Telangana was conducted today, on May 15. Foxconn has purchased 186.7 acres of land in Kongar Kalaan to set up the manufacturing plant.
He tweeted, “Demonstrating the “Telangana Speed”, I am happy to announce the groundbreaking of first of Foxconn’s plants in Telangana at Kongar Kalaan today. With an investment of over $500M it shall create 25,000 direct jobs in first Phase.”
Demonstrating the “Telangana Speed”, I am happy to announce the groundbreaking of first of Foxconn’s plants in Telangana at Kongar Kalaan today
With an investment of over $500M it shall create 25,000 direct jobs in first Phase #Telangana #Foxconn pic.twitter.com/PHThJWxsfT
— KTR (@KTRBRS) May 15, 2023
Foxconn CEO Sidney Liu flew down to Hyderabad for the deal. He said, “this manufacturing plant will require significant investment, and it will enable us to better serve our customers, expand capabilities and create new opportunities for our team members. We encourage new people to join our team, and cannot wait to see new local talent to work with us”.
It was reported that Apple has started relocating its manufacturing operations due to ongoing tensions between US and China, forcing them to rethink its overdependency on China. Its suppliers have started looking at India for better options.
In March, Foxconn got an order from Apple to make Airpods and planned to set up a factory in India to manufacture the products.
Furthermore, Foxconn has made investments in other Indian states as well. Earlier, the Karnataka Government approved Foxconn to invest USD 968 million in the state in March. The company has acquired 13 million square feet of land in Devanahalli, a neighbourhood close to Bengaluru, the capital of the Indian IT industry, according to a statement to London Stock Exchange.
Foxconn is the largest contract electronics manufacturer in the world and the primary manufacturer of about 70% of all iPhone models. The deals in India highlight Foxconn’s ambitions to further diversify production outside of China.
In April, Foxconn signed a joint venture with the Indian conglomerate Vedanta and is going to set up a semiconductor and display manufacturing facility in the Dholera Special Investment Region (SIR) near the city of Ahmedabad in Gujarat.
This deal has boosted India Semiconductor Mission. It will boost India’s ambition to become a global electronics manufacturing and design hub. In the manufacturing of modern electronics, semiconductors are critical components in it. From autos and medical equipment to smartphones and laptops, they are utilised in a variety of products to make integrated circuits, memory modules, and microprocessors in these products.
