Foxconn, a major supplier to Apple, will invest $600 million in two projects in Karnataka, India, focusing on chip-equipment manufacturing and casing components for iPhones, as announced by the southern Indian state on Wednesday.
In a letter of intent signed with the Karnataka government, Foxconn stated it will invest around $350 million to set up a plant for manufacturing iPhone case components and approximately $250 million for a semiconductor manufacturing equipment project.
Karnataka Minister of Infrastructure Development, MB Patil, expressed satisfaction with the state's conducive industrial and investment policies that support the growth of industries, and he deemed the talks with Foxconn's chairman fruitful.
The projects are expected to generate 13,000 job opportunities in the state. Foxconn is collaborating with Applied Materials for the semiconductor manufacturing initiative.
This latest announcement follows Foxconn's recent deal with the state of Tamil Nadu to invest about $194 million in a new electronic components manufacturing facility.
India's Prime Minister Narendra Modi has been actively offering incentives to attract global manufacturers and suppliers, aiming to make India a significant semiconductor and hardware manufacturing hub. The country has introduced production-linked incentives in critical sectors to attract foreign investment.
Recent investments by companies such as Micron and Applied Materials, along with Apple's decision to accelerate iPhone production in India, have underscored the nation's growing appeal to global electronics manufacturers. However, some ventures, like the multibillion-dollar partnership between Foxconn and Vedanta, have encountered issues and were discontinued.
Despite such setbacks, Foxconn has reiterated its commitment to India and plans to avail the incentives provided by the government.
In 2021, the Indian government introduced a $10 billion incentive program to localize semiconductor and microchip production. Although the initial response from global companies was not as expected, the scheme has undergone revisions, and prominent semiconductor manufacturers and chipmakers have shown interest in establishing production facilities in India.
Electronic manufacturers like Foxconn are keen on diversifying their supply chains and reducing dependency on China, making India an attractive destination for investments. The Indian government is actively fostering a domestic ecosystem to support the growth of the electronics industry.
Recently, India hosted its second annual semiconductor conference, where executives from Foxconn, Micron, Applied Materials, and AMD participated. AMD also announced its plans to invest $400 million in the country over the next five years at the event.
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