Foxconn denies concluding a Rs 16,000 crore facility-building agreement with Tamil Nadu
According to a report by China’s Securities Times, as quoted by Reuters, Foxconn Industrial Internet (FII), a subsidiary of tech giant Foxconn, has denied signing any agreement with the Tamil Nadu government for Rs 16,000 crore to establish a new facility for electronic components.
According to FII, “We did not sign any investment agreement,” the Securities Times daily said, adding that the business had previously released a statement debunking such “rumours.”
On the other side, the Tamil Nadu government said on Monday that it had reached an agreement with Foxconn to construct a new campus for an electronic components manufacturing plant in the Kancheepuram district, close to Chennai, which would result in the creation of 6,000 new employment.
On Monday morning, the state government posted on Linkedin that a “big announcement” was anticipated later that day, which would allow Tamil Nadu to maintain its “top position as India’s Electronics Powerhouse.”
The subsidiary division of Foxconn manufactures electronic products, cloud computing hardware, and industrial robots. It wasn’t made clear if the new India facility will produce parts for iPhones, for other businesses, or for both.
Foxconn is reportedly planning to spend $500 million to build a new facility in Bengaluru close to Kempegowda International Airport to produce smartphone accessories.
Prior to their withdrawal from the $19.5 billion transaction, Foxconn and Vedanta were in discussions to form a joint venture to produce semiconductors for the Indian market. This shattered the company’s intentions to produce chips.
According to a Foxconn spokeswoman, the firms “mutually agreed to part ways” since the project “was not moving fast enough,” there were difficult gaps that it was unable to resolve without assistance, and there were other external problems as well.
