Karnataka: Bommai Government Approves Foxconn's Proposal To Set Up Rs 8000 crore Apple iPhone Manufacturing Unit Near Bengaluru

The BJP government in Karnataka on Monday (March 20) approved an Rs 8,000 crore proposal by Taiwanese electronic manufacturing behemoth Foxconn(Hon Hai Technology Group) to set up a mobile phone manufacturing unit near Bengaluru.

The proposal was approved in the State High-Level Clearance Committee (SHLCC) meeting chaired by chief minister Basavaraj Bommai.

The manufacturing facility will come up on 300 acres of land at the Information Technology Investment Region (ITIR) industrial area, Doddaballapur, in Devanahalli Taluk, near the Bengaluru International Airport.

Foxconn will invest Rs 8,000 crore in three phases. The project is expected to generate 50,000 direct jobs in the next three to five years and more than 1 lakh jobs in the state over the next ten years.

The proposed Foxconn facility will have a production capacity of one lakh mobile phones by December 2025. It aims to scale the production to two crores by December 2029. Foxconn is expected to invest Rs 3,000 crore in the first phase during the 2023-24 fiscal, RsRs 4,000 crore in the second 2025-26 phase and Rs 1,000 crore in the last phase during 2026-27.

The big-ticket investment represents a significant win for CM Bommai-led government as it seeks to catapult the state, which is already India's undisputed information technology powerhouse, into a manufacturing hub.

On March 3, Foxconn and Karnataka government signed a letter of intent in which the Taiwanese giant like to establish a manufacturing facility in over 300 acres at the Information Technology Investment Region (ITIR) Industrial Area, spread across Doddaballapur and Devanahalli taluks, on the outskirts of Bengaluru with a proposed creation of over 1 lakh jobs during the five years between 2023 and 27.

A statement by the company a day later that the 'Letter of Intent' was "not definitive" triggered a political slugfest. However, Foxconn chairman Young Liu wrote another letter to CM Bommai expressing keenness to take forward its proposed electronics production facility in Karnataka.

In a two-page letter to CM Bommai, Foxconn chairman Young Liu said he will "ensure successful grounding of the "Project Elephant" in Bengaluru,"

The letter sought to dispel any confusion triggered by the company's earlier statement issued on March 4 that the 'Letter of Intent' signed between the company and the State government on March 3 was "not definitive" in nature.