Foxconn unit in talks with Tamil Nadu govt for a new plant, $200 mn investment: Report

A unit of contract electronics manufacturer Foxconn is reportedly in talks with the Tamil Nadu government to invest $200 million in the state for a new plant for electronic components. Foxconn already has a campus in the state near Chennai where they assemble Apple’s iPhones. 

According to a report in Reuters, CEO of Foxconn Industrial Internet, Brand Cheng, and other company representatives met Tamil Nadu officials including Chief Minister MK Stalin last week to discuss investments in the state. 

The company shared a plan with the officials to initially invest $180-200 million in the facility, according to the news agency. It is unclear if the parts made at the facility would be used for iPhones or other company products. 

The plant is expected to be complete by 2024, and there is likely to be further investments. A final decision is yet to be made. 

Foxconn is also in talks with Gujarat as it aims to enter India’s semiconductor sector. Foxconn Chairman Young Liu is expected to speak at an annual semiconductor event hosted by the government this week. 

Karnataka state government also discussed with Foxconn its commitment to invest $1.07 billion for a new plant. 

Meanwhile, Foxconn pulled out of a $19.5 billion chips joint venture with Vedanta, and said that "the project was not moving fast enough". Foxconn however said that it is committed to India.  "This is not a negative. There was recognition from both sides that the project was not moving fast enough. There were challenging gaps we were not able to smoothly overcome, as well as external issues unrelated to the project," Foxconn said in a statement after backing out from the Vedanta JV.

Also read: Vedanta-Foxconn split: Who the two companies partner with next could be the next big story for India's semiconductor industry

Also read: Foxconn CEO Brand Cheng meets Tamil Nadu CM MK Stalin amid talks of major investment