Foxconn to invest $600 million in India to make iPhone components, chipmaking equipment

By Munsif Vengattil

BENGALURU (Reuters) -Taiwan’s Foxconn will invest $600 million in two projects in Karnataka state in southern India to make casing components for iPhones and chip-making equipment as it spreads its bets beyond China.


Some $350 million will go towards setting up the iPhone component facility which will generate 12,000 jobs, while Foxconn will tie up with Applied Materials in a $250 million project to make chip-making tools, Karnataka state said in a statement.

Reuters was first to report on the investment plans on Wednesday.

The investment decisions follow a meeting between Foxconn Chairman Young Liu, Karnataka’s IT minister Priyank Kharge, and Industries Minister MB Patil.

Liu has been in India to attend a flagship semiconductor conference hosted by the federal government.

He has since met officials from the southern state of Tamil Nadu, after which the state announced that Foxconn will invest $194 million in a new electronic components manufacturing facility that will create 6,000 jobs.

Foxconn has also plans to apply for incentives under a $10 billion scheme by India government to promote chip manufacturing, and is in talks with Gujarat to set up a chipmaking facility in the western state.

(Reporting by Munsif Vengattil in Bengaluru; editing by Aditya Kalra and Himani Sarkar; editing by Jason Neely and Jane Merriman)