Taiwan’s Foxconn, the world’s largest contract electronics manufacturer and a key supplier to Apple Inc, on Saturday signed a pact with Maharashtra to invest $5 billion over five years in a semiconductor manufacturing facility.
The investment, touted to be one of the largest in the state, comes within a week of US multinational General Motors’ $1 billion pledge to manufactures automobiles in Maharashtra. It will also bolster Prime Minister Narendra Modi’s ‘Make in India’ campaign, which aims to turn Asia’s third-largest economy into a manufacturing powerhouse.
The MoU to set up the unit was signed in the presence of chief minister Devendra Fadnavis and Foxconn chairman Terry Gou on Saturday at the World Trade Centre. Fadnavis said the Foxconn plant would generate employment for about 50,000 people. The company employs about 1.3 million people during peak production times, making it one of the largest private employers in the world.
India could help Foxconn mitigate accelerating wage inflation in China, where it makes the majority of iPhones, and base production sites closer to markets where its key clients want to grow. With $20 billion of investments lined up for India alone, Foxconn is in talks with other states to set up manufacturing units and forge possible partnerships in the world’s fastest growing smartphone market.