Foxconn eyes investments in semiconductor and consumer electronics segments in Maharashtra

Almost two and half years after the Maha Vikas Aghadi government had announced a deal with Foxconn Technology Group to build an electronics manufacturing plant was cancelled citing lack of any progress, the Taiwan based industry major on Friday met the industry minister Subhash Desai and proposed its desire to invest in semiconductor and consumer electronics segments. A delegation led by Foxconn chairman Young Liu expressed enthusiasm to find synergies of scale with Maharashtra and jointly develop world class talent and products geared towards the future.

Desai, who in January 2020 had announced the scrapping of the deal signed with Foxconn during BJP-led government for the $5 billion investment, today said, ‘’We will provide full institutional support to Foxconn from the state Government and ensure the development of a hi-tech ecosystem that is also socially conscious and brings tremendous skilled employment to the country. We have sharpened our focus on realizing strategic investments and have been able to generate more than 4 lakh jobs in the last two years and we hope to partner with Foxconn to ensure sustainable job creation of high value talent in the state.”

The state delegation also comprised Ajit Patil and Ranga Naik, Joint CEOs at MIDC, who held focus group discussions with specialists from Foxconn in the sectors of ICT, Electric Vehicles, Mobility, and battery manufacturing. Industry champions from these sectors who have already invested in the state such as WIPRO, Honeywell, Mitsubishi, Causis E-Mobility, Tata Motors and Exide, shared their investment experience, discussed localization and sourcing options and paved the way for stronger value chain integration with Foxconn.

Desai said Foxconn, the largest and most globally trusted electronics manufacturer in the world and 22nd in the list of Fortune 500 companies, is expanding into Semiconductor Manufacturing and is exploring the South Asian market for its next venture to build for the world.

In the last two years, arguably the toughest years for businesses worldwide, Maharashtra secured more than Rs 6 lakh crore ($80 + Billion) worth of investments and has also allocated world class industrial land, infrastructure, and facilities to more than 80% of these investors in record time. With pioneering policies that are both lucrative to the investor and strengthen the state’s sectoral value addition, manufacturing and skilling ecosystems, Foxconn’s vision for the future closely aligns with the state’s goal of attracting global partners with a long term vision.

Earlier, Foxconn decided not to go ahead with its commitment to invest around $5 billion (over Rs 35,000 crore) in the State as proposed in an MoU signed with the government in 2015. Desai had announced that the deal would not be carried out owing to Foxconn’s internal dispute with Apple Inc. “The investment commitment made by Foxconn is not coming through. It will not happen in the future as well. While they had taken up land near Navi Mumbai to set up initial facilities, it seems like multiple factors have led to their exit from Maharashtra,” he said.