Ms Akansha || Business Outreach
7 Mar 2023
In a two-page letter to Chief Minister Basavaraj Bommai, Foxconn chairman Young Liu said he will "ensure successful grounding of the "Project Elephant" in Bengaluru," seeking to clear any air of confusion created by the company's earlier statement that Friday's agreement was not "definitive" in nature.
Hon Hai Precision Industry (Foxconn) pledged on Monday that it will continue to work on the Memorandum of Understanding it signed with the State Government on Friday and that it will be in close contact with Karnataka to move its electronic manufacturing project on the outskirts of Bengaluru forward.
Foxconn Chairman Young Liu wrote a two-page letter to Chief Minister Basavaraj Bommai in which he promised to “ensure the successful grounding of “Project Elephant” in Bengaluru,” attempting to dispel any misunderstanding that may have arisen from the company’s earlier claim that Friday’s agreement was not “definitive” in nature.
Liu stated, “I am optimistic that this project will build a strong basis for our other various ambitions, spanning mechanical and precision equipment, electric vehicles, IC design, and semiconductor divisions, to consider your state as a possible investment destination.
He thanked the Industries Minister Murugesh R. Nirani, IT/BT Minister CN Ashwath Narayan, and Chief Secretary Vandita Sharma for hosting the Foxconn team, enabling several meetings, and allowing him to see the T2 of the international airport. “Because we rely heavily on air freight for a variety of our products, the effectiveness of cargo handling at the airport does have a big impact on our operations and metrics.
The presence of social infrastructure in the area where the plot is designated for the project, the government of Karnataka’s assistance for skilling and talent acquisition, and the timetables for infrastructure preparedness were all noteworthy, according to the Foxconn chairman.
The largest contract manufacturer in the world, with headquarters in Taiwan, has proposed building an electronics production and assembly facility outside of Bengaluru, where it plans to make iPhones for Apple.
The new facility, which will be built on a 300-acre site close to the airport in Bengaluru, will be Foxconn’s biggest in the country and will create 100,000 direct and indirect jobs over the following ten years.
Those informed on the project estimated that Foxconn and the government will invest close to $1 billion in the plant. The state of Bommai has been promoted by the local government as a top location for investments in the design and manufacture of electronic systems (ESDM).
According to rumours, the Taiwanese business is expected to produce various electronic products and parts for electric vehicles at the proposed factory, in addition to iPhones and parts for Apple’s smartphone.
In India, the firm already produces iPhones. It has facilities in Telangana, Andhra Pradesh, and Tamil Nadu.
According to officials, Foxconn’s investment will enable Karnataka to entice several other leading international electronics businesses to the state.
Strong domestic demand for iPhones and a rise in exports from India, driven by the diversification of global supply chains away from China, are what have prompted Foxconn to step up its efforts in that country.
Foxconn’s India division, Hon Hai Technology India Mega Development, received a $500 million investment last year, according to an announcement.