Foxconn signs MoU with Tamil Nadu govt worth Rs 16,000 crore for new mobile components manufacturing facility

The state of Tamil Nadu has signed an agreement with Taiwanese electronic manufacturing firm Foxconn on Monday to build a mobile component manufacturing facility in the Kancheepuram district at a proposed cost of 16,000 crore rupee. This facility will likely employ 6000 people and the company is also in talks with the state of Tamil Nadu for future investments which is a part of the strategy of the company to establish an EV plant in India this year.

After signing the deal with TN, Foxconn Group Chairman Young Liu told the media in Chennai that the company is yet to decide on the location and is still working on its plans to expand semiconductor and chip manufacturing capacity in India. This marks the first major investment by Hon Hai Technology Group after it parted ways with Vedanta on a $19.5 billion chip-making joint venture.

“Various investment opportunities in TN were discussed. We also discussed further investments in EVs and electronic components. Another milestone in our ambition to make TN the new emerging electronics manufacturing hub of Asia,” tweeted Chief Minister (CM) M K Stalin after a meeting with Liu on Monday.

“Manufacturers who have seen immense success in Tamil Nadu over the past many years know that by investing more in the state they will only gain more. This also illustrates the trust global investors have in the leadership of Hon’ble Chief Minister of Tamil Nadu Thiru MK Stalin. With this proposed investment, and many more to come, Tamil Nadu is poised to not only remain the top electronics exporter in the country, but also significantly increase its electronics exports in the coming years,” he added.

The company is also close to mentioning in its annual report about the establishment of a production line in India to manufacture two-wheeler EVs to cater to the needs of two-wheeler electronic vehicles in the area of South-East Asia.