Foxconn to invest $600 mn in Karnataka for components, chipmaking machinery

Foxconn, a Taiwanese company, is expanding its bets outside of China and will invest $600 million in two projects in the southern Indian state of Karnataka to produce iPhone case components and chip-making machinery.

12,000 jobs will be created by the $350 million facility that will manufacture iPhone components, and Foxconn will collaborate with Applied Materials (AMAT.O) on a $250 million project to produce chip-making tools, according to a statement from Karnataka state. Following a meeting between Industries Minister MB Patil, Karnataka's IT Minister Priyank Kharge, and Foxconn Chairman Young Liu, investment decisions have been made.

Following a meeting between Foxconn Chairman Young Liu, Karnataka's IT Minister Priyank Kharge, and Industries Minister MB Patil, investment decisions were made. Liu travelled to India to take part in a significant semiconductor conference that the federal government was hosting. Following his meeting with Tamil Nadu government representatives, the state made the announcement that Foxconn would be investing $194 million in a new facility for manufacturing electronic components that will support 6,000 jobs.

In addition, Foxconn intends to seek for incentives under a $10 billion programme launched by the Indian government to support the chip manufacturing industry. The company is also in discussions with Gujarat about establishing a chip manufacturing facility in the western state.