After a Bloomberg report stated that Foxconn may be considering investing around $700 million in manufacturing plants in Karnataka, India, the company came out to clarify that there is no definitive agreement to invest in India as of yet.
Foxconn further added that negotiation and internal reviews are going on and the investment sum and other information reported by the media are not being released by the company. The Taiwanese firm is reported to be looking forward to investing in iPhone parts manufacturing plants in India in a bid to shift the market from China due to the country’s zero-COVID policy.
Foxconn denies any finalized agreement between the company and the Karnataka government
Foxconn, a Taiwanese firm, is the biggest manufacturer of electronics parts and assembler for Apple’s iPhone. Amid strict covid policies and heightened political tensions between China and the US, both the companies, Foxconn and Apple, are looking to shift the manufacturing focus from China.
The CEO of Foxconn, Young Liu, recently visited India from Feb 27 to March 4. His visit sparked several reports about the company planning to invest in India. Bloomberg reported that Foxconn is considering investing $700 million in India. The Bloomberg report cited unnamed sources.
Ever since such reports came out, the company has denied that any such binding agreement has taken place. A statement from the company said, “Foxconn has not entered into binding, definitive agreements for new investments during this trip.” The company further added that the investment sums being discussed in media reports are not official.
Liu insisted in a statement that his visit to India served the purpose of deepening partnerships and seeking cooperation in areas such as semiconductor development and electrical vehicles. The CEO also met Prime Minister Narendra Modi for a talk where they discussed various topics concerning India’s technology and innovation environments.
Karnataka government surprised over Foxconn’s statement about “no binding agreement”
Basavaraj S. Bommai, the chief minister of Karnataka, tweeted on Friday that Apple will soon start manufacturing its iPhones at a new plant in Karnataka, creating approximately one lakh new jobs. The chief minister further added that 300 acres of land area has been selected for this purpose near the Bengaluru International Airport.
The chief minister expressed immense pleasure over the deal and hoped for a bright future for the manufacturing industry in India.
Foxconn had signed a letter of intent with the Karnataka government confirming the company’s intent to establish a manufacturing plant in the Indian state within a period of five years.
Foxconn’s statement, denying any definitive pact between the Karnataka government and the company, has disappointed and baffled the government officials of the Indian state. According to sources, the whole Foxconn team was present in Bengaluru, where they not only signed an MoU (Memorandum of Understanding) but also visited the land where the manufacturing plant would be built in the event of a binding agreement.
The government ministry has not yet responded to the statements made by Foxconn. The company’s diplomatic statement saying that the company has not finalized anything yet, most possibly means that the company has no such plans to invest in India at present.
