Foxconn Denies Signing Rs 16,000 Cr Deal With Tamil Nadu To Build Facility: Report

Aug 08, 2023

Foxconn Industrial Internet (FII), a subsidiary of tech behemoth Foxconn, has denied signing any deal with the Tamil Nadu government worth Rs 16,000 crore to build a new facility for electronic components, according to a report by China's Securities Times, as cited by Reuters.

"We did not sign any investment agreement," FII was quoted as saying by the Securities Times newspaper, adding the company had issued a statement in July refuting similar "rumours."

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However, on the other hand, the Tamil Nadu government said on Monday it has signed a deal with Foxconn to build a new electronic components manufacturing facility campus in the Kancheepuram district, near Chennai, that would create 6,000 jobs.

The state government had written on Linkedin on Monday morning that a "big announcement" was expected during the day that would mean Tamil Nadu would retain its "top position as India's Electronics Powerhouse."

Foxconn’s subsidiary arm makes electronic devices, cloud service equipment and industrial robots. It wasn’t clearly revealed if the new India plant would make components for iPhones or for other companies, or both.

According to The Economic Times report, Foxconn is likely to invest $500 million to set up a new unit near the Kempe Gowda international airport in Bengaluru to make smartphone accessories.

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Foxconn was earlier in talks with Vedanta to create a semiconductor joint venture for Indian markets, however, both the companies withdrew from the deal valued at $19.5 billion shattering the company's chipmaking plans.

A Foxconn spokesperson was quoted as saying that the companies “mutually agreed to part ways", adding that the project “was not moving fast enough", and that “there were challenging gaps (the project was) not able to smoothly overcome, as well as external issues unrelated to the project."