Foxconn unit to sign $194 mn deal for components plant in Tamil Nadu: Report

Following reports of a possibility of a Foxconn unit committing to invest $200 million in Tamil Nadu to set up a new plant, reports now suggest that the agreement would be signed between the state government and the subsidiary, Foxconn Industrial Internet, on Monday.

According to a report in news agency Reuters that cited a senior government source in the know, the Foxconn unit would sign the deal for a new facility for electronic components. That plant would create 6,000 new jobs. The Foxconn unit plans to invest $194.45 million to build the campus in Kancheepuram district.

This facility would be separate from the manufacturer’s Chennai campus where it assembles Apple’s iPhones. Around 35,000 people work in that plant, the report added. Foxconn plans to quadruple the workforce at the Chennai factory by late 2024.

Last week, the agency reported that the Foxconn subsidiary is in talks with Tamil Nadu about the investment, and planning to complete the plant in 2024.

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An announcement is apparently expected later in the day. Foxconn Chairman Young Liu is expected to attend the signing ceremony with Chief Minister MK Stalin.

Meanwhile, the company is also in talks with Gujarat and Karnataka as it aims to enter India’s semiconductor sector.

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 but added that there were challenging gaps that Foxconn and Vedanta were unable to overcome, apart from external issues unrelated to the project.

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

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