 "Foxconn arm Yuzhan Technology to infuse Rs 13K cr to set up TN factory")
The Tamil Nadu government on Tuesday cleared the Rs 13,180 crore project by Yuzhan Technology, part of Taiwan’s Foxconn Group, at Kancheepuram. The unit is reportedly expected to assemble smartphone display modules, which will be one of the first such units to cater to Apple's growing presence in the country.
The unit is expected to generate at least 14,000 jobs. Of the 14 existing manufacturing units in the Apple supply chain, seven are based in Tamil Nadu.
The move comes as the American technology giant ramps up production in India through its largest vendors — Foxconn, Pegatron, Tata Electronics, and Wistron — to boost capacity.
The current suppliers in Tamil Nadu, include Tata Electronics, Flex, Hon Hai Precision (Foxconn), Guangdong Lingyi iTECH Manufacturing Co, ON Semiconductor Corporation, Pegatron Corporation, Taiwan Surface Mounting Technology, and Zhen Ding Technology Holding.
The Cabinet has cleared 13 projects with an investment commitment of Rs 38,699 crore. Other investments include a Rs 10,375 crore project by Leap Green Energy, and Rs 9,000 crore upcoming unit by Tata Motors in Ranipet.
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"These projects will be spread across 12 districts and span diverse sectors, including auto and electric vehicles, electronics, green energy, telecom equipment, and advanced manufacturing," said TRB Rajaa, Tamil Nadu’s industries minister.
Kaynes Circults (Rs 1,395 crore) and Freetrend Industrial India (Rs 1,000 crore), Grand Atlantis (Rs 500 crore), Ascent Circuits (Rs 612 crore), and Mahindra Electric Automobile (Rs 210 crore) are among the projects cleared.
"The #InvestInTN juggernaut continues to roll forward, transitioning from attracting investments to grounding them, and transforming them into high-quality jobs and industrial output," he added.
Foxconn is crucial as Tamil Nadu has seen a spike in electronics exports recently, driven by iPhone exports. The state is now India’s top electronics exporter, with exports reaching $9.56 billion in 2023-24 (FY24), up 78 per cent from $5.37 billion in 2022-23, ahead of Karnataka and Uttar Pradesh.
According to industry experts, a reason for the rise in exports is the ‘China Plus One’ strategy adopted by global players like Apple, which has led contractors such as Foxconn and Pegatron, along with suppliers like Salcomp, to contribute to Tamil Nadu’s emergence as an electronics hub.
Apple exported phones worth Rs 34,089 crore in the first four months of this financial year, as it shifted a large part of its supply chain to India under the ‘Make in India for the World’ initiative. In FY24, the company’s domestic market is expected to touch Rs 67,000 crore.