The Karnataka government and iPhone maker Foxconn have signed the Letter of Intent (LoI) to set up two additional projects with an estimated investment outlay of ₹5,000 crore, said Large and Medium Industries Minister M.B. Patil on Wednesday. It is expected to generate 13,000 jobs.
These two projects are in addition to the nearly ₹14,000-crore iPhone end assembly plant that Foxconn plans to set up at ITIR, near Devanahalli. The Minister on Wednesday shared the details of the LoI that was signed in Chennai on Monday in the presence of Foxconn chairman Young Liu and State IT and BT Minister Priyanka Kharge.
The intended projects include a phone enclosure project for which Foxconn Industrial Internet, (FII), a Foxconn subsidiary, will invest ₹3,000 crore ($350 million) that is estimated to create 12,000 jobs. The other project is the semicon equipment project in which Foxconn will invest ₹2,000 crore ($250 million) to take up a project in collaboration with Applied Materials that is likely to generate 1,000 jobs. The LoI outlines the framework for the proposed two projects that Foxconn plans to establish in the State, a release from the Minister’s office said.
Scouting for land parcels
The phone enclosure unit will engage in manufacturing sub assembly components for smartphones, specifically mechanical enclosures of iPhones, the release said, adding that the FII is currently evaluating suitable land parcels in and around Bengaluru for the project. The team had earlier met Chief Minister Siddaramaiah and IT & BT Minister Priyank Kharge in this regard. The company has been shown a 100 acre land parcel available at Japan Industrial Township in Tumakuru, the release said.
Further, the release said that Foxconn’s Semicon Equipment Manufacturing project in collaboration with Applied Materials is to establish a production unit for semiconductor manufacturing equipment. The location for this project is likely to be finalised at the Haraluru Muddenahalli - Hi-Tech Aerospace and Defence Park-Phase II in Bengaluru Rural district, where Foxconn has sought a 35-acre plot, it added.
