iPhone-maker Foxconn to invest $500 mn, create 25,000 jobs in Telangana

Apple iPhone manufacturer Foxconn and the Government of Telangana held the groundbreaking ceremony of Foxconn’s first manufacturing plant in the state at Kongara Kalan village, on the outskirts of Hyderabad. The ceremony was performed in the presence of K T Rama Rao, the chief minister of Telangana, as well as Foxconn’s CEO Sidney Liu. The Taiwan-based company will invest $500 million in the state and will create 25,000 jobs in the first phase.

"Demonstrating the “Telangana Speed,” I am happy to announce the groundbreaking of first of Foxconn's plants in Telangana at Kongar Kalaan today. With an investment of over $500M it shall create 25,000 direct jobs in first phase," said KTR, Telangana Minister of Industry and Commerce in a tweet.

A joint statement by the company and the government said that the new facility promises to continue delivering world-class products to the market. It is touted to be a hub for Foxconn's Interconnect Technology operations' in the state. According to reports, production in the Kongara Kalan plant is likely to commence by the end of this year.

The development comes two months after Foxconn, a subsidiary of Taiwanese electronics major Hon Hai Technology Group, signed a memorandum of understanding (MoU) with Telangana government, announcing the setting up of the manufacturing plant in the state, The manufacturing facility is likely to create employment for 1 lakh people in the 10-year period.

Notably, over the past few months, Foxconn, which is the world’s largest technology manufacturer, has been working towards expanding its operations in the country.  Foxconn's Chairman Young Liu, in a meeting with Prime Minister Narendra Modi earlier this year, assured the company’s commitment to continue to build an ecosystem in India, allowing all stakeholders to share, collaborate and thrive.

Last month, the company acquired a 300-acre land parcel on the outskirts of India's tech capital Bengaluru as the Apple supplier looks to ramp up the production of iPhones. The Taiwanese electronics major has bought 1.2 million square metres of land in Devanahalli, near the airport. Foxconn Hon Hai Technology India Mega Development will pay ₹300 crore for the land parcel.

Last year, the Taiwanese electronics hardware major formed a joint venture (JV) with Anil Agarwal-led Vedanta Group to make semiconductors in India.