Foxconn chairman to visit Karnataka on August 16; Meeting with CM planned

Foxconn Chairman Young Liu

The chairman of Taiwan-based Hon Hai Technology Group, also known as Foxconn, is set to visit Karnataka on August 16.

Sources told Moneycontrol that Young Liu, chairman of Foxconn and the world's largest contract electronics maker, is expected to visit Bengaluru to meet CM Siddaramaiah and Karnataka Minister for Large and Medium Industries MB Patil.

"Liu will hold discussions with the CM and Industries Minister. He will also visit Foxconn's under-construction manufacturing plant near Kempegowda International Airport in Bengaluru, where work is progressing. It’s unclear if any new investments will be announced, but if there are, it will be a bonus for us," a source familiar with the developments told Moneycontrol.

Sources said there were also protests by farmers and landowners in Devanahalli, which delayed the land acquisition. Later, the state government decided that the compensation amount for the 300 acres allotted to Foxconn in Kundana village of Devanahalli taluk would be deposited directly in the court.

Also, read: Bengaluru: Farmers stage protest against land acquisition for Foxconn

Meanwhile, Prime Minister Narendra Modi on August 14 met Liu in Delhi. "I highlighted the wonderful opportunities India offers in futuristic sectors. We also had excellent discussions on their investment plans in India in states like Karnataka, Tamil Nadu and Andhra Pradesh," Modi said in a post on X.

In May 2023, Hon Hai Precision Industry (Foxconn) acquired land near Kempegowda International Airport in Devanahalli, Bengaluru, for Rs 300 crore ($37 million). The manufacturing facility is being set up within the Information Technology Investment Region (ITIR) industrial area in Doddaballapur, Devanahalli Taluk.

Also, read: Foxconn purchases 300 acres of land near Bengaluru airport for Rs 300 crore after MoU with Karnataka govt

Foxconn is investing Rs 8,500 crore in the manufacturing unit, expected to generate over one lakh jobs in Karnataka over the next 10 years.

According to the plan, production at the plant is scheduled to commence by April 2024, with investments spread over three phases. However, it missed the deadline. As per the earlier plan, Foxconn was to invest Rs 3,000 crore in Phase 1 (2023-2024), followed by Rs 4,000 crore in Phase 2 (2025-2026), and Rs 1,000 crore in Phase 3 (2026-2027). The manufacturing targets include one lakh iPhones by December 2025, 50 lakh by December 2026, one crore by December 2027, and two crore by December 2028.

On March 20, the Karnataka government signed a memorandum of understanding (MoU) with Foxconn, committing Rs 8,000 crore for a mobile manufacturing unit, which is expected to provide employment opportunities for 50,000 people in the state.

Also, read: How Bengaluru airport's brand-new T2 won over Foxconn

Separately, Foxconn Industrial Internet (Fii) has expressed interest in investing Rs 8,800 crore in Karnataka, which is expected to create 14,000 job opportunities. Fii, a subsidiary of iPhone maker Foxconn, held a meeting with Siddaramaiah and Patil on July 17 to discuss their proposal for establishing a supplementary plant alongside their proposed unit in the Devanahalli ITIR region.

Also, read: Foxconn Industrial Internet eyes Rs 8,800-crore investment in Karnataka