Telangana, Andhra Pradesh, Karnataka vie to host Foxconn's new facilities

Southern states have all made offers to Foxconn to establish large industrial parks or townships, as the Apple manufacturer eyes expansion in India

Foxconn, the global electronics manufacturing giant best known for producing Apple's iPhones, is exploring significant expansion plans in India, with multiple southern states vying to host its new facilities. Telangana, Karnataka, and Andhra Pradesh have all made offers to Foxconn to establish large industrial parks or townships, following a model similar to Foxconn's facilities in China and Taiwan, according to a report by The Economic Times.

Telangana, Andhra Pradesh, Karnataka offers

Telangana has offered Foxconn 2,000 acres of land to develop a 'Foxconn City.' This facility is expected to go beyond traditional industrial parks, potentially including worker housing, healthcare facilities, entertainment options, and even its own security infrastructure, akin to Foxconn’s massive Zhengzhou facility in China. Telangana's IT and Industries Minister, Duddilla Sridhar Babu, mentioned that the state government is encouraging Foxconn to consider options in Tier-II and Tier-III cities, in addition to areas near Hyderabad.

Andhra Pradesh has proposed 2,500 acres for a similar industrial park, while Karnataka has offered 300 acres specifically for a supplier park where Foxconn's vendors could operate in close proximity.

Foxconn diversifies manufacturing base

Foxconn’s expansion in India is part of its broader strategy to diversify its manufacturing base away from China amid rising operational challenges and geopolitical tensions. The company already operates significant facilities in Tamil Nadu and Andhra Pradesh and is building a new plant in Karnataka, primarily for iPhone production.

The company is set to start manufacturing Apple's latest iPhone 16 series, including the Pro and Pro Max models, in India.

Foxconn is also exploring other sectors in India, including electric vehicles (EVs), batteries, and information and communication technology (ICT).

Apple's entire manufacturing operations in India are poised to generate up to 600,000 jobs by the end of the current financial year. This is expected to include 200,000 direct positions, with women making up around 70 per cent of these roles.

Foxconn’s move to build integrated townships in India also aligns with its global strategy of providing onsite housing and amenities for workers, which not only helps retain employees but also enhances safety, especially for female workers. The company's expansion in India is seen as a crucial step in reducing its dependency on Chinese manufacturing while also capitalising on the growing opportunities in the Indian market.