An investment of up to $200 million is being sought by Foxconn Industrial Internet (FII), a subsidiary of the multinational Taiwanese electronics manufacturer Foxconn, to build an electronic components plant in Chennai, southern India.
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The CEO of FII, Brand Cheng, and other corporate representatives and officials reportedly met this past week with the Chief Minister of the state of Tamil Nadu, MK Stalin, and other government leaders to discuss the investment in the southern state of India.
This meeting took place last week in order to talk about the deal and potential investment plans. FII CEO, Brand Cheng and other company representatives met with Tamil Nadu Chief Minister MK Stalin and other members of the government to present their ideas and strategies regarding the same.
This Taiwan-based company hopes to complete the plant’s construction by 2024, after which extra costs are projected.
But the ultimate choice regarding whether or not the construction will take place, has not yet been made, though.
Foxconn, one of Apple’s (AAPL) biggest suppliers, is currently assembling iPhones for Apple at a facility close to the city of Chennai, India.
Foxconn and Gujarat
In an effort to enter the Indian semiconductor market, Foxconn is also in talks with the state of Gujarat, which is the home state of Prime Minister Narendra Modi.
Foxconn Chairman Young Liu will be present at the conference PM Modi will open on Friday in Gandhinagar, capital of Gujarat.
On July 28, PM Modi will officially launch Semicon India 2024.
Foxconn Industrial Internet (FII), which had committed to spend $1.07 billion in its new manufacturing plant in the state, has conducted conversations with the governing bodies of the south Indian state of Karnataka, it was announced last week.
Earlier This Month
The largest contract electronics manufacturer in the world, Foxconn, announced in the second week of July, that it will “no longer move forward” with its $19.4 billion joint venture with Vedanta (VEDL), an Indian energy and metals company, which is considered to be the third-largest economy in Asian continent.
The incident occurred only a few weeks after Foxconn withdrew from a $19.5 billion semiconductors joint venture with Vedanta. According to the Taiwanese electronics giant, an independent proposal for the construction of a semiconductor factory in the Indian subcontinent is now being made.
After Foxconn withdrew from a USD 19.5 billion semiconductor joint venture with Vedanta Ltd because the firm was unable to find an appropriate technology partner to produce the chips used in everything from vehicles and refrigerators to cell phones and other consumer electronics, Vedanta suffered On the BSE front, as their shares fell 2.60 percent to 274.90. It decreased 2.56 percent to 275 at the NSE.
Even though officials have made an effort to refute that perception, the revelation was perceived as a blow to the Indian government’s efforts to transform the nation into a tech manufacturing powerhouse.
Foxconn, however, withdrew from this joint venture for chips with Vedanta, claiming that “the project was not moving fast enough.” Foxconn, on the other hand, asserted its commitment to India.
This is not a drawback as claimed by both sides. Both parties acknowledged that the project was not going quickly enough.
After withdrawing from the Vedanta JV, Foxconn issued a statement saying that there were difficult gaps and external problems unrelated to the project that it was unable to resolve effortlessly. They also stated that this move was made with “mutual agreement” and that it allowed the business “to explore more numerous expansion prospects.”
