March 4, 2023 (Updated March 5): Simultaneous announcements by the state governments of Karnataka and Telangana, yesterday, suggesed that Taiwan-headquartered contract-electronic manufacturing giant Foxconn had decided to set up plants in both states.
Karnataka Chief Minister Basavaraj Bommai tweeted:
Apple phones to be built in the state soon. Apart from creating about 100,000 jobs, it will create a whole lot of opportunities for Karnataka. Under the visionary leadership of Hon’ble PM @narendramodi Ji, we will do our share to make India a $5 trillion economy by 2025. https://t.co/bdcVuVHkvT — Basavaraj S Bommai (@BSBommai)March 3, 2023.
Telangana IT Minister KT Rama Rao tweeted:
Super stoked to announce a mega investment by @HonHai_Foxconn in Telangana that will create employment for a whopping One Lakh youngsters in Telangana 😊The announcement is made after Chairman of FoxConn Mr Young Liu met Hon’ble CM Sri KCR Garu at Pragathi Bhavan today pic.twitter.com/zzFAnBxcvz — KTR (@KTRBRS) March 2, 2023
However both states may have jumped the gun. Just a day later, Foxconn denied that it had made any firm commitment about setting up a new plant in either state
Bloomberg reported earlier that the Foxconn Technology Group plans to invest about $700 million on a new plant in India to ramp up local production. It plans to build the plant to make iPhone parts on a 300-acre site close to the airport in Bangalore. The factory may also assemble Apple’s handsets, may also use the site to produce some parts for its nascent electric vehicle business.
It added that the investment is one of Foxconn’s biggest single outlays to date in India and underscores how China’s at risk of losing its status as the world’s largest producer of consumer electronics. The new production site in India is expected to create about 100,000 jobs.
Bloomberg also comments: India has offered financial incentives to Apple suppliers such as Foxconn, which began making the latest generation of iPhones at a site in Tamil Nadu last year. Smaller rivals Wistron Corp. and Pegatron Corp have also ramped up in India, while suppliers such as Jabil Inc.,have begun making components for AirPods locally.
A note from the Telangana chief minister's office said the Taiwanese electronics manufacturer will set up its plant in the state paving way for the creation of one lakh jobs over the next 10 years.