Foxconn subsidiary plans operational facility in Tamil Nadu

Foxconn Industrial Internet (FII), a major subsidiary of Foxconn and a key supplier to companies like Apple and Lenovo, is aiming to establish an operational facility in Tamil Nadu by next year, according to sources familiar with the discussions.

Delegation offers 

Top officials from FII, including CEO Brand Cheng, met with Tamil Nadu Chief Minister MK Stalin to discuss the potential project. Earlier, the FII delegation had visited Karnataka, where they were offered a 100-acre plot at the Japanese Industrial Park (JIP) in Tumakuru district.

The FII unit contributes about a third of Foxconn's revenue and plays a crucial role as one of its major subsidiaries. The company informed the Tamil Nadu government of its interest in manufacturing various types of components, particularly mechanical components for phones. The discussions have raised optimism about the investment opportunity.

FII officials have yet to respond to queries for comment.

Top clients 

As a subsidiary of the world's largest contract manufacturer for Apple, Foxconn, FII specialises in producing electronic devices, cloud service equipment, and industrial robots. It counts prominent companies such as Apple, Amazon, Lenovo, Huawei, and Dell among its clients.

Sources suggest that FII executives have expressed strong interest in the project and are currently evaluating the opportunity. The initial phase of investment is expected to be approximately $200 million, potentially generating around 5,000 jobs.

During the meeting with Chief Minister MK Stalin, the government extended support and assured the facilitation of the project. Tamil Nadu Industries Minister TRB Raja also highlighted the availability of a skilled workforce and the conducive industrial ecosystem in the state.

Previously, Foxconn had pulled itself back from the $19.5 billion joint venture deal with Vedanta. This had delivered a massive blow to India’s chip-making ambitions.

The company said in a statement,“Foxconn has determined it will not move forward on the joint venture with Vedanta,” without elaborating any further on the reasons. Although in a statement to Reuters, Vedanta said Vedanta Ltd, is in "a comfortable financial position" and there was "no basis" to such speculation.