Foxconn is a Taiwanese international company , a multinational electronics contract producer, and the world’s largest technology manufacturer and a service producer.Â
It manufactures products for major companies based in Japan, American, Canadian, Chinese and Finnish. Some notable products manufactured by Foxconn Technology consist, Nintendo, iPad, iPhone, iPod, BlackBerry, and Kindle. Even though the company is headquartered in Taiwan, the majority of its revenue are earned from the Chinese units. As of records of 2012, about 40% of the worldwide sold consumer electronics, has been manufactured by the Foxconn factories.
Not to mention it is a key supplier of the Apple Inc as well.
The Taiwan Group technology company, on Monday, 31 July, 2024, made a pledge to make an investment of about Rs 1600 crore, that is $194 million, utilising it in the plan of setting up a high-end electronics component manufacturing unit in Kanchipuram district, Tamil Nadu.Â
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The Announcement of Investment
The investment is to be made by Foxconn Industrial Internet (Fii), the largest subsidiary of Foxconn Technology, the discussion and finalisation of the investment was done in the meeting between the Foxconn’s chairman, Young Liu, and the chief minister of Tamil Nadu, M K Stalin, at the Secretariat, later to which, a letter of intent was signed between the two parties.
In the Kanchipuram district, the Fii will be setting up a greenfield manufacturing unit, to produce electronic components for mobile phones.
It was announced that the new facility will be working independent of the already set up unit Foxconn’s units in the Sriperumbudur district, which currently specialises in assembling Apple phones for domestic sale as well as for International markets, and currently has about 35,000 employees. Â
Achievement for Tamil Nadu
According to the statement made by the Industries Minister, T R B Raaja, Tamil Nadu has been a favourable destination and a subject of multiple investments and expansions made by Foxconn. This has come to prove that Tamil Nadu is one of the top choices for setting up manufacturing units in India, for major other companies as well. It is expected that the new plant has the potential to create about 6,000 job opportunities. The minister mentioned this as one of the achievements of the state. He further added, that the investment will play a pivotal role in achieving the ambition of transforming Tamil Nadu into a $1 trillion economy.
Additionally, Tamil Nadu is also one of the top electronics exporters and this investment will supposedly be an aid in increasing the exports of electronics in the coming years. It passionately supports the idea of “Make in India” as well, showing Foxconn’s strong presence in India.
Another major contract supplier of Apple Inc, Pegatron, also indicated last week, to undertake the manufacturing unit of Phase-2 near Chennai.Â
Other Plans of Foxconn Technology
Along with the company’s significance presence with facility and manufacturing units in districts of Tamil Nadu, the Seriperumbudur plant, indulged in assembling the high end iPhone 13 and iPhone 14, the company continues to expand the facility even further, 50 km from Chennai, as the Apple Inc has future plans of moving considerable units operating in China, to India.Â
It has plans to set up assembling units in Karnataka and Telangana as well.
However, clarity has not been given about whether the new facility will be producing components for iPhone, or for other companies, or possibly both.
In the future, Foxconn has plans of increasing the workforce by 4 times at their iPhone factory in Tamil Nadu, by 2024.Â
