Taiwan's Foxconn, a prominent player in the semiconductor industry, has made headlines with its recent agreement to invest 16 billion rupees ($194 million) in a state-of-the-art electronic components manufacturing facility in Tamil Nadu, India. This strategic investment is not only expected to boost the region's economy but also generate approximately 6,000 job opportunities, signaling a significant development in the local industry.

Located in the Kancheepuram district near Chennai, the capital of Tamil Nadu, the upcoming facility will be known as the Foxconn Industrial Internet (FII) (601138.SS). While specific details are yet to be disclosed, a reliable source from the state government shared this insider information while requesting anonymity.

The new facility will operate independently from Foxconn's existing sprawling campus near Chennai, which primarily focuses on the assembly of Apple's (AAPL.O) iPhones. Recognizing the state's achievement, Tamil Nadu Minister for Industries TRB Rajaa expressed their satisfaction with the agreement. This significant development culminated in discussions between Foxconn Chairman Young Liu and several state officials, including the chief minister, to finalize the deal.

Foxconn's current facility near Chennai already employs approximately 40,000 workers. In line with their diversification strategy to reduce reliance on China, as previously reported by Reuters, Foxconn plans to quadruple its workforce by late 2024 at the Tamil Nadu iPhone factory, nurturing further growth and technological advancement in the region.

Chairman Liu's visit to India overlapped with the conclusion of the federal government's semiconductor conference. During this visit, Foxconn also inked a research and innovation agreement with the esteemed Indian Institute of Technology, Madras. Additionally, the state government's investment entity, Guidance, provided support to facilitate this collaboration.

The primary objective of the partnership between Foxconn, the Indian Institute of Technology, Madras, and the state government is to introduce high-value technology to Tamil Nadu. The region aspires to ascend the value chain in the electronics industry, aiming for greater technological sophistication and innovation, as highlighted by a source with knowledge of the matter. Reuters had previously reported ongoing discussions between Foxconn and Tamil Nadu regarding this significant investment in components manufacturing, targeting completion of the new plant by 2024.

Specializing in the production of electronic devices, cloud service equipment, and industrial robots, Foxconn Industrial Internet (FII) is well-positioned to contribute cutting-edge technological advancements to the region. While it currently remains uncertain whether the upcoming plant will exclusively manufacture components for iPhones, cater to other firms, or serve a combination of clients, it undoubtedly represents a remarkable stride for the semiconductor industry in Tamil Nadu and beyond.