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The government of Karnataka has signed a letter of intent with Taiwanese iPhone supplier company Foxconn, which is set to invest $600 million for two projects in the Southern Indian state. This is one of the recent investment efforts the company made as it hopes to further expand its business in India.
“The industrial and investment policies of the state government are conducive to nurturing an ecosystem favouring the growth of industries. The talks held with the company chairman were fruitful,” said MB Patil, Karnataka Minister of Infrastructure Development.
The state shared the news this week, saying Foxconn will allot the $350 million for a plant dedicated to iPhone case component production, while the $250 million will be used for a semiconductor manufacturing equipment project. According to Foxconn’s estimates, the two projects could generate up to 13,000 jobs in the place.
The new investment benefits Prime Minister Narendra Modi’s push to make India a major hub for semiconductors. It also follows the recent developments of these plans through various efforts of different companies investing now in India for iPhone-related businesses. To recall, Foxconn also recently acquired equipment worth $33 million from an Apple Inc. unit in order to further expand its operations in India. The purchases will reportedly be used for the “operational needs” of the company in the country. India’s Tata Group is also expected to take over Wistron’s iPhone factory soon in the southern Karnataka state, which is estimated to be worth over $600 million. Once taken from the hands of the Taiwan-based company, it will make Tata the first local Indian company to manufacture iPhones for Apple.
Other more recent successes of Modi’s plan for India include the planned $194 million investment of Foxconn for an electronic components manufacturing facility in Tamil Nadu and US company Micron’s plan for an $825 million Indian semiconductor plant.