The Taiwanese tech giant Foxconn has decided to set up a mobile phone component manufacturing facility in Tamil Nadu. This is a big boost for India’s phone export market, which has been growing rapidly in recent years.
Foxconn is one of the world’s largest electronics manufacturers and a major supplier of Apple’s iPhones. It already has a unit at Sriperumbudur in Kancheepuduram district, where it assembles iPhones for the domestic and overseas markets. The new facility will be located near the existing unit and will cost Rs 1,600 crore. It will create 6,000 jobs and produce more mobile components for various brands.
The project was announced after Foxconn’s chairman and CEO Young Liu met Tamil Nadu Chief Minister MK Stalin on July 26. They signed a letter of intent (LoI) in the presence of state officials and Foxconn executives. The state government welcomed the investment and said it was a testament to Tamil Nadu’s attractiveness to global companies.
Tamil Nadu is the top electronics exporter in India and aims to increase its share in the global market. The state has been supporting the electronics industry with various policies and incentives, such as the production-linked incentive (PLI) scheme launched by the central government in 2020. The PLI scheme offers financial rewards to manufacturers who increase their production and exports of mobile phones and other electronic products.
State industries minister T R B Rajaa expressed his satisfaction with Foxconn’s consistent investments and expansion projects in Tamil Nadu, highlighting the state’s position as the preferred destination for manufacturing among prominent global companies. He hailed this as a significant accomplishment for Tamil Nadu.
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India’s mobile phone exports crossed $4 billion in 2021, more than double the amount in 2020. The country has become a net exporter of mobile phones for the first time, as it reduced its imports and increased its local production. India is also exporting mobile phones to advanced and competitive markets in Europe and Asia, showing its quality and competitiveness.
The new facility by Foxconn will further strengthen India’s position as a mobile phone exporter and help it achieve its target of $60 billion by 2025-26. It will also contribute to MK Stalin’s ambition of making Tamil Nadu a $1 trillion economy. The project is a win-win situation for both Foxconn and Tamil Nadu, as they will benefit from each other’s expertise and resources.
According to a report by Bloomberg News on July 31, there are plans for Foxconn to invest nearly ₹4,100 crore in building two component factories in India. This is part of further increasing their footprint in India. Karnataka will most probably be chosen as the location for these new factories. It is expected that at least one of these facilities will focus on manufacturing components for Apple products, including those used in iPhones.
