Tamil Nadu, on Friday made a strong pitch to woo electronics manufacturing services company, Foxconn, to invest in the state as the Taiwanese major plans foray into sectors like electric vehicles and semiconductors and is scouting for the right location to set up the plant. This comes a day after Telangana wooed Foxconn.
Currently, the Taiwanese company, with annual revenues of $206 billion, has manufacturing facilities in Tamil Nadu and Andhra Pradesh.
According to a social post update, Guidance’s Managing Director and CEO, Pooja Kulkarni, said: “It was our privilege to meet Foxconn Chairman Young Liu in Delhi today and discuss their expansion plans in the electronic segment in India & Tamil Nadu and their entry into emerging sectors such as EVs, semiconductors, etc”.
Partnership with Foxconn
“Our time-tested partnership with Foxconn started in 2006 and has grown immensely. The company also appreciated Tamil Nadu's support, business-enabling ecosystem and various ease-of-doing initiatives resulting in tremendous growth for them in the country,” the update stated .
Pooja Kulkarni also met Foxconn's Head of EV Division Kay Chiu; Head of Mechanical Enclosures Division Jainn-Her Wu and the Head of the Semiconductor Division Bob Chen, and discussed various areas of collaboration.
Information Technology and Industries Minister, Telangana, KT Rama Rao met Liu on Thursday and invited Foxconn to explore investment opportunities in the State.
Meetings by the representatives of the two states were held in the backdrop of the meeting between the chairman of Foxconn and the Managing Director of Vedanta, Akash Hebbar to discuss the roadmap of their project .
Joint Venture
Vedanta and Foxconn had signed a memorandum of understanding in February to form a joint venture company in India. Vedanta will hold 60 per cent of the equity in the JV, while Foxconn will own 40 per cent.
This is the first major joint venture in the electronics manufacturing space after the Centre announced an incentive scheme for semiconductors and display manufacturing.
Vedanta plans to invest around $15 billion in a phase-wise manner over the next 5-10 years to build displays and semiconductor chips in India. The JV will look at setting up a semiconductor manufacturing plant in the next two years.