Foxconn to invest $400m more in Telangana

HYDERABAD: In a major boost to the state’s manufacturing sector, third-party phone and peripherals contract manufacturer Foxconn Group on Saturday announced an additional investment of $400 million into Telangana. The group had announced in March an investment of $150 million and laid the foundation for construction of its manufacturing unit in Kongarakalan on the city outskirts in May.

Industries minister K.T. Rama Rao hailed the company's decision to infuse additional investment, taking its total to $550 million.

The Taiwan-based contract manufacturer Foxconn Interconnect Technology Ltd (FIT) is Apple's biggest supplier. It is likely to manufacture AirPods along with other digital peripherals at its Kongarakalan facility.

“Moving so fast, Telangana. Another $400 million is coming (sic),” V. Lee, Foxconn’s India representative, announced on his LinkedIn wall, while sharing FIT Hon Teng Limited's 'voluntary announcement' that the company had made to the Hong Kong bourse.

Reacting to Lee's post, Rama Rao tweeted on Saturday, "Our friendship with Foxconn Group remains steadfast, each of us delivering on mutual commitments. With total infusement of $550m (adding previous $150m), FIT is poised to deliver on its promises in Telangana. This once again proves Telangana Speed (sic)."

Foxconn chairman Young Liu had called on Chief Minister K. Chandrashekar Rao and Rama Rao in March and discussed the company’s investment plans for Telangana. The state government allotted 200 acres in Kongarakalan to Foxconn to set up its manufacturing facility for which Rama Rao laid the foundation stone on May 15.