TN: Foxconn firm to invest Rs 13,000 cr, create 14,000 jobs in components unit

The Tamil Nadu cabinet has cleared a proposal from Yuzhan Technology (India) Pvt Ltd, a group firm of the Taiwanese electronics major Foxconn, to invest more than ₹13,000 crores in Tamil Nadu to produce components for smartphones, according to a statement from the state government.

The project will create 14,000 jobs, said the government.

The cabinet on Tuesday (October 8) approved 14 new industrial projects in the state with an investment of ₹38,698 crores, including the Yuzhan proposal. These new projects will generate 46,931 jobs, said the state government.

Also Read: TN Cabinet gives nod to Rs 38,698 crore new investments

Yuzhan’s unit to come up in Oragadam

Yuzhan’s factory will come up at the ESR Industrial Park in Oragadam near Chennai, according to a report in DH quoting certain sources. It will manufacture display modules and other key components, primarily for Apple, that will reduce the dependence on importing such components from China.

Foxconn has its largest manufacturing facility outside China in the same industrial park, where it employs more than 41,000 people to assemble iPhones. The Taiwanese major has leased about 5 lakh sq ft of land in the ESR Park.

Also Read: Foxconn business in India crosses $10 billion mark; invests $1.4 billion till date

Electronics ecosystem in TN

Tamil Nadu has developed an enviable ecosystem for electronics manufacturing. Most of the important suppliers of Apple like Tata Electronics, Pegatron, and Salcomp have established huge manufacturing units in the state. The production of several key components by Yuzhan in Tamil Nadu will be a major advantage for these players.

Yuzhan’s project is the result of the Tamil Nadu government’s efforts to move up the value chain from electronics manufacturing services to the production of components.

Also Read: Apple’s ‘big plans’ for India include production of iPads, AirPods: Report

14% of iPhones being assembled in India

Apple has been steadily increasing the number of iPhones being assembled in India through Foxconn and Pegatron, and the Tata Electronics plant that is coming up in Hosur will add to this.

India has now become an integral part of Apple’s manufacturing network with 14 per cent of its iPhones worth $14 billion being assembled in the country, according to the Economic Survey 2024 presented in Parliament in July this year.