BIG SHIFT FROM CHINA: Foxconn commits $700 mn for new plant in Karnataka

Apple partner Foxconn is stepping up its India business plans and investments significantly, in a move that is being seen as a shift from China just like its key customer. In the latest development, Taiwanese electronics contract manufacturer Foxconn has decided to invest an estimated $700 million to set up a new plant in Karnataka. The proposed plant, to be located near the Bengaluru airport, is expected to manufacture and assemble devices including the iPhone.

Experts described Foxconn’s bet on India as part of a strategy to reduce its over-dependence on China, where 75 per cent of its production is located.

Minister of State for Electronics & IT Rajeev Chandrasekhar on Friday tweeted that Foxconn would build a new plant spread over 300 acres of land in Karnataka for assembly of Apple phones. Karnataka Chief Minister Basavaraj Bommai too made a Twitter announcement. “Apple phones will be built in the state soon. Apart from creating about 100,000 jobs, it will create a whole lot of opportunities for Karnataka,” Bommai said.

Just a day ago, Foxconn had signed an agreement with the Telangana government to set up a manufacturing facility with a potential to create 100,000 jobs. So, the new manufacturing plans of Foxconn come with the promise of generating over 200,000 jobs across Telangana and Karnataka.

The two announcements, for Telangana and Karnataka, coincided with Foxconn chairman Young Liu’s meeting with Prime Minister Narendra Modi this week. This was Liu’s second India visit in less than a year.