Hon Hai Precision Industry (Foxconn) said on Monday that it will work closely with Karnataka to advance its electronic manufacturing project on the outskirts of Bengaluru, pledging to work on the Memorandum of Understanding (MoU) signed with the State Government on Friday.
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.
"I am confident that this project will lay a strong foundation for our other multiple plans, spanning mechanical/precision machinery,k electric vehicle, IC Design & semiconductor segments to consider your State as a potential investment destination," Liu said.
He mentioned IT/BT Minister CN Ashwath Narayan and Industries Minister Murugesh R Nirani and Chief Secretary Vandita Sharma for receiving the Foxconn team and facilitating various meetings and his visits to the T2 of the international airport. "The efficiency of cargo handling at the airport does have a significant bearing on our operations and metrics as we rely on air freight for our multiple products to a considerable extent.
"It was great to note the infrastructure readiness timelines, the Government of Karnataka's support for skilling and talent acquisition and the availability of social infrastructure around the region where the plot is earmarked for the project," the Foxconn chairman said.
The world's largest contract manufacturer, based in Taiwan, has proposed establishing an electronics manufacturing and assembly unit on the outskirts of Bengaluru, where it is expected to produce iPhones for Apple.
The new plant, which will be built on a 300-acre plot near Bengaluru's international airport, will be Foxconn's largest in India, creating 100,000 direct and indirect jobs over the next ten years.
The government and Foxconn did not reveal the facility's projected investment, but people briefed on the project estimated it to be close to $1 billion. Bommai's government has promoted the state as a prime location for investment in electronic system design and manufacturing (ESDM).
As per reports, the proposed plant will manufacture other electronic items and electric vehicle parts in addition to iPhones and components for Apple's smartphone.
In India, the company already manufactures iPhones. It operates in three states: Tamil Nadu, Andhra Pradesh, and Telangana.
Officials believe Foxconn's investment will help Karnataka attract many other leading global electronics companies.
Foxconn's increased India push is being driven by strong domestic demand for iPhones as well as a surge in exports from India as a result of global supply chain diversification away from China.
Foxconn announced a $500 million investment in its India unit, Hon Hai Technology India Mega Development, last year.