Foxconn, the world’s largest contract manufacturer of iPhones, is on the brink of establishing its own dedicated manufacturing city in India, similar to the Foxconn City located in its home country of Taiwan and China. Multiple states in India are competing to offer land to Foxconn for this ambitious project, aiming to create a large-scale production hub that aligns with the company’s global operations and its relationship with Apple. This proposal comes at a time when India seeks to enhance its position in the global electronics supply chain.
The Race Among Indian States
The southern states of Andhra Pradesh, Telangana, and Karnataka are all vying to attract Foxconn by offering substantial plots of land. The Telangana government has proposed 2,000 acres, while Andhra Pradesh has offered 2,500 acres for an industrial park. Karnataka is in the race as well, with a proposal to provide around 300 acres for a supplier park. However, the specific locations of these plots have yet to be disclosed by the state governments.
Interest from Telangana
According to reports from the Economic Times, Telangana’s IT and Industry Minister, D. Sridhar Babu, mentioned that the state’s Chief Minister recently met with Foxconn’s chairman, expressing strong interest in setting up a Foxconn City. In response, the Telangana government offered about 2,000 acres of land. The proposal allows Foxconn to develop the land according to its specific needs, and it is anticipated that Foxconn may also provide space for its suppliers, which could include companies from Taiwan, China, or the United States.
Site Assessment Planned
Sridhar Babu also highlighted that Foxconn has indicated a team will visit Telangana this week to assess the land. On August 17, during the inauguration of Foxconn’s industrial housing facility near Chennai, President Young Liu mentioned the possibility of creating an industrial township close to Chennai. Other southern states are encouraging similar initiatives as they seek to attract this major Taiwanese firm.
Comparative Insights: Foxconn City in China
Foxconn’s existing operations in China have illustrated the benefits of integrating a manufacturing hub with supporting infrastructure. If Foxconn opts for land near a Tier 2 city in Telangana, it would streamline the process, allowing the state government to facilitate the setup more efficiently. While Foxconn has not commented directly on specific states, discussions are reportedly ongoing with various southern regions.
Plans for a Township in India
The southern states are presenting varied models for Foxconn’s setup. During his visit to Tamil Nadu, Liu clarified that the company plans to create an industrial township or park that would house manufacturing facilities alongside accommodations for workers in a single integrated environment. Currently, Foxconn’s facilities are situated in Sriperumbudur, where iPhones are manufactured. This strategic move towards creating more comprehensive hubs is expected to extend beyond smartphone assembly, venturing into sectors like ICT, electric vehicles, and battery manufacturing.
Foxconn’s Expansion in India
Foxconn already operates a unit in Sri City, Andhra Pradesh, and is in the process of establishing another facility in Karnataka, which is anticipated to focus on iPhone assembly. The potential development of urban spaces or dedicated zones for manufacturing will not only boost local economies but also align with India’s goal of becoming a global manufacturing powerhouse.
