Leading contract manufacturer of electronics globally Foxconn, which operates through multiple entities, has announced board approval for a $400 million investment in Telangana, the southern State where in May it broke ground for a $500 million manufacturing facility.
Telangana IT and Industries Minister shared a social media post of V. Lee, Foxconn representative in India, and said that adding the previous $150 million, the total investment by will be $550 million.
“Our friendship with Foxconn Group remains steadfast, each of us delivering on mutual commitments. With total infusement of $550m (adding previous $150m), FIT is poised to deliver on its promises in Telangana. This once again proves Telangana speed,” the Minister posted on X (formerly twitter).
Earlier, Mr. Lee had said: “Moving so fast, Telangana! Another US$400M is coming…” He said this sharing a Hong Kong stock exchange filing by FIT Hon Teng announcing board approval for a $500 million capital injection into subsidiary Foxconn Interconnect Technology Singapore, which in turn will infuse $400 million into Chang Yi Interconnect Technology (India) and the remaining $100 million in Vitenamese entity Fu Wing Interconnect Technology (Nghe An) Company.
One of the largest suppliers to iPhone maker Apple, Foxconn in recent months has generated considerable interest with its investment commitments for new facilities in Telangana, Karnataka and Tamil Nadu. The company since has started construction of its facility at Kongara Kalan, in Ranga Reddy district that neighbours Hyderabad.
At the ground breaking in May, Mr. Rao had said the facility will create 25,000 direct jobs in its first phase itself. Foxconn is setting up the facility, on about 200 acres, as part of an expansion strategy to diversify its global manufacturing base. The investment will not only benefit FIT’s business but also contribute to the overall economic prosperity of the region, FIT and the State Government had said in a joint statement.
“We signed the MoU on March 2 and in about two and a half months we are here today at the groundbreaking ceremony,” the Minister had said then, pointing to how the Telangana government understands the need to work at an accelerated pace. He assured government support to the company, particularly in realising its dream of getting the plant ready in 9-12 months.
FIT is focused on manufacturing products broadly for mobile devices, digital computer and consumer electronics, communication infrastructure, automotive industry. A formal announcement on the products it will be making at the Hyderabad factory is awaited though Industries and IT Secretary Jayesh Ranjan said electronic equipment and connectors for various original equipment manufacturers (OEMs) will be manufactured at the plant.