Foxconn pledges to work with Karnataka to take “Project Elephant” in Bengaluru forward

In a two-page letter to Chief Minister Basavaraj Bommai, Foxconn chairman Young Liu said he will “ensure successful grounding of the “Project Elephant” in Bengaluru,” seeking to clear any air of confusion created by the company’s earlier statement that Friday’s agreement was not “definitive” in nature.

“I am confident that this project will lay a strong foundation for our other multiple plans, spanning mechanical/precision machinery,k electric vehicle, IC Design & semiconductor segments to consider your State as a potential investment destination,” Liu said.

He mentioned IT/BT Minister CN Ashwath Narayan and Industries Minister Murugesh R Nirani and Chief Secretary Vandita Sharma for receiving the Foxconn team and facilitating various meetings and his visits to the T2 of the international airport. “The efficiency of cargo handling at the airport does have a significant bearing on our operations and metrics as we rely on air freight for our multiple products to a considerable extent.

“It was great to note the infrastructure readiness timelines, the Government of Karnataka’s support for skilling and talent acquisition and the availability of social infrastructure around the region where the plot is earmarked for the project,” the Foxconn chairman said.

The Taiwan-based biggest contract manufacturer in the world has proposed to set up an electronics manufacturing and assembly unit on the outskirts of Bengaluru where it is expected to produce the iPhones for Apple.

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The new plant that will come up on a 300-acre plot near the Bengaluru international airport will be Foxconn’s largest such unit in India and generate 100,000 direct and indirect jobs over the next 10 years.

The government and Foxconn did not reveal the projected investment for the facility, but people briefed on the project put it at nearly $1 billion. Bommai’s government has been marketing the state as a key destination for investment in electronics system design & manufacturing (ESDM).

There are reports that besides iPhones and components for Apple’s smartphone, the Taiwanese company is also likely to manufacture other electronic items and electric vehicle parts at the proposed plant.

The company already manufactures iPhones in India. It has facilities in Tamil Nadu, Andhra Pradesh and Telangana.

Officials believe an investment by Foxconn would help Karnataka attract many other frontline global electronics companies to the state.

Foxconn’s increased India push is triggered by strong domestic demand for iPhones as well as a surge in exports from India led by the diversification of global supply chains away from China.

Last year Foxconn announced an infusion of $500 million into its India unit, Hon Hai Technology India Mega Development.