Electronics manufacturing major and iPhone maker Apple’s supplier Foxconn broke ground on Monday for a production plant near Hyderabad, on which Telangana IT Minister K.T. Rama Rao said the company will be investing $500 million.
A greenfield project, the facility will create 25,000 direct jobs in its first phase itself, Mr. Rao told the groundbreaking at Kongara Kalan, in neighbouring Ranga Reddy, in the presence of Foxconn subsidiary Foxconn Interconnect Technology (FIT) Chairman and CEO Sidney Lu and others.
“We signed the MoU on March 2 and in about two and a half months we are here today at the groundbreaking ceremony,” the Minister said, pointing to how the government of Telangana understands the need to work at an accelerated pace. He assured government support to FIT in setting up the plant, especially in realising its dream of getting the plant ready in 9-12 months.
The new facility is being set up as part of the company’s expansion strategy to diversify its global manufacturing base. The investment will not only benefit FIT’s business but also contribute to the overall economic prosperity of the region, FIT and the State Government said in a joint statement.
Industries Secretary Jayesh Ranjan said electronic equipment and connectors for various original equipment manufacturers (OEMs) will be manufactured at the plant, which will come up on 200 acres. The company planned to start construction of the factory immediately, he said.
Addressing the gathering, Mr. Liu said new facilities such as the one proposed to grow the global manufacturing base required significant investments and helped “better serve our customers, expand capabilities and create new opportunities for team members.” The company looked forward to working with the local talent and continue the fruitful relationship with the government, he added.
FIT provides interconnect solutions for mobile devices, digital computer and consumer electronics, communication infrastructure, automotive, industry and medical applications and connected smart devices. Electric vehicles, 5G AIOT (artificial intelligence Internet of Things) and audio are new focus areas, according to the company.
The groundbreaking assumes importance in the backdrop of the Telangana Government’s emphasis to emerge as a preferred manufacturing destination for electronics as well as electric mobility. During his visit to India earlier this year, Foxconn (Hon Hai) chairman Young Liu spoke of the company’s manufacturing plans for Telangana and Karnataka. Earlier this month, Foxconn said through a subsidiary it has acquired 300 acres in Devanahalli Taluk, Bangalore Rural District, for ₹300 crore.
For Foxconn, India is shaping into a key production centre. In an investor call last week, Mr. Liu said Hon Hai entered India in 2006, ahead of the competitors and at a larger scale. “India has now reached a population of 1.4 billion people, translating to a large potential market for mid-to-high-end products which our clients are focusing on. Hence, it is necessary for us to continue to expand assembly and component operations in India,” he said.
