Board approves Foxconn’s $400 million investment in Telangana.

Foxconn, a prominent global contract manufacturer of electronics with operations across various entities, has received board approval for a substantial investment of $400 million in Telangana, a southern state in India. This announcement follows the company’s groundbreaking ceremony in May for a $500 million manufacturing facility within the same region.

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The Minister of IT and Industries in Telangana shared a social media post by V. Lee, Foxconn’s representative in India, highlighting that when combined with a previous investment of $150 million, the total commitment from Foxconn would reach $550 million. The Minister praised the enduring partnership between Telangana and Foxconn, emphasizing their commitment to mutual agreements and the swift execution of plans.

In a separate social media post, Mr. Lee expressed excitement about the rapid pace of progress in Telangana. He referred to a Hong Kong stock exchange filing by FIT Hon Teng, a subsidiary of Foxconn, which indicated that a $500 million capital injection was approved for subsidiary Foxconn Interconnect Technology Singapore. This injection would funnel $400 million into Chang Yi Interconnect Technology (India) and the remaining $100 million into the Vietnamese entity Fu Wing Interconnect Technology (Nghe An) Company.

As a significant supplier to Apple, Foxconn’s recent investment commitments for new facilities in various Indian states have garnered substantial attention. The company has commenced construction on its facility in Kongara Kalan, situated in the Ranga Reddy district adjacent to Hyderabad.

During the groundbreaking ceremony in May, officials projected that the facility’s first phase alone would generate 25,000 direct jobs. The facility, spanning approximately 200 acres, is part of Foxconn’s strategic expansion plan to diversify its global manufacturing operations. A joint statement by FIT and the State Government emphasized that this investment would not only bolster FIT’s business but also contribute to the overall economic progress of the region.

The Minister emphasized the swiftness of progress, highlighting that the memorandum of understanding (MoU) was signed on March 2nd and the groundbreaking event took place just two and a half months later. This efficiency demonstrates the Telangana government’s dedication to rapid development. The government expressed full support for Foxconn’s ambitions, particularly in achieving the ambitious goal of completing the plant within 9-12 months.

FIT’s primary focus is on manufacturing a wide range of products, including those for mobile devices, digital computers, consumer electronics, communication infrastructure, and the automotive industry. Although specific details regarding the products to be manufactured at the Hyderabad factory are awaited, it was indicated that the plant would produce electronic equipment and connectors for various original equipment manufacturers (OEMs).

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