Foxconn to make $600m investment in Indian ops
Foxconn appears to have resolved its on-off strategy for manufacturing in India: news has just broken of a major new facility in the state of Karnataka.
The confirmation came via a tweet from M B Patil, Karnataka's minister of commerce. He said the Taiwanese firm – along with the US's Applied Materials – have pledged to invest USD 360 million into a phone casing component plant and USD 240 million in a semiconductor equipment manufacturing project. He added that the new strategy will create 12,000 jobs.
If confirmed, the news will represent some 'closure' for Foxconn and the Indian semiconductor industry. Foxconn is one of the world's semiconductor giants, thanks largely to its close association with Apple. Most of its operations are in China, where it runs the world's largest iPhone factory.
But it has been looking closely at extending into India thanks to the availability of government subsidies and a skilled work force. Foxconn had previously agreed a USD 19.5 billion JV with Indian metals-to-oil firm Vedanta to set up a semiconductor and display production plant. But Foxconn pulled out of this last month.