Foxconn: Southern states seek to outdo each other in search of a ‘city’ for Foxconn

Foxconn, one of the world’s largest contractors manufacturers for electronicsHe is offered 2,000 acres at a yet-to-be-identified location in Telangana to build a ‘Foxconn The city drew on its facilities in its home country and those in China, a senior lawmaker told ET.

He Taiwanese company It is also being courted by at least two other states—Karnataka and Andhra Pradesh—to set up a industrial park or ‘city,’ insiders told ET.

Best known as the creator of AppleFoxconn has also been offered 2,500 acres in Andhra Pradesh to build an industrial park and 300 hectares in Andhra Pradesh to build an industrial park. karnataka for a supplier park,” said a person with direct knowledge of the events.

The exact location of these land parcels is not yet known. “Recently, our prime minister met the chairman of Foxconn, who expressed strong interest in setting up a ‘Foxconn City,'” Telangana IT and Industries Minister Duddilla Sridhar Babu told ET.

“In response, our government has offered approximately 2,000 acres for this purpose. The proposal is that they will develop the land as per their needs. Therefore, these areas could also be used for their subsidiaries,” he added.

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“There is also a possibility that they may offer parts of the land to their suppliers, which could include companies from Taiwan, China or the US,” Babu told ET.

Foxconn has indicated that it will send a survey team to Telangana, probably this week, to assess the land, the minister said.

On August 17, at the inauguration of its industrial housing facility in Sriperumbudur, Foxconn Chairman Young Liu told ET that his company was looking to build an “industrial township” near Chennai in Tamil Nadu.

Now, others southern states They are also seeking similar initiatives from the main Taiwanese government, the officials said.

“The Industrial Infrastructure Corporation manages several parcels of land in Telangana and we encourage Foxconn to explore options in Tier 2 and Tier 3 cities as well. If the company decides to select land near Hyderabad in a Tier 2 city, we will be able to facilitate the process easily,” said Babu from Telangana.

Queries sent to Foxconn remained unanswered as of press time on Tuesday.

Meanwhile, talks are underway between other southern states and Foxconn, the sources said.

“Karnataka is offering Foxconn around 300 acres to set up a supplier park where they can have their vendors in one space,” said one of the people cited above. “Nothing has been finalised yet, but talks are underway with the company to build such a facility. This was also discussed during President Liu’s visit to India.”

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Different models

It is true that each southern state is looking for different “models” from Foxconn.

In Tamil Nadu, Liu made it clear that the plan is to create a “township” or “industrial park” where manufacturing facilities and workers’ housing will be on the same premises.

“We have been doing this (building townships) in many different countries and we believe that over time it will bring value not only to employees but also to customers,” he said.

The company “was planning to look for campuses outside Chennai for more housing and industrial parks,” he added.

Foxconn’s operations in Tamil Nadu currently include its Sriperumbudur plant, where it makes iPhones. Liu said the company will go beyond smartphone assembly and venture into other segments in India, making products for sectors such as information and communication technology (ICT), electric vehicles (EV), batteries, etc. The company also has a unit in Sri City, Andhra Pradesh, and an upcoming plant in Karnataka that will primarily focus on iPhones.

The Telangana government’s proposal goes beyond an industrial park and is inspired by Foxconn’s facilities in Zhengzhou, China.

The Zhengzhou plant is one of Foxconn’s largest. It features a sprawling factory, dormitory-style housing, hospitals, a fire station, and leisure facilities such as cinemas, supermarkets and cafes. With its own security staff and a dedicated police station, it is a self-sufficient city in itself.

A person familiar with operations at the China plant said workers received an allowance on top of their regular pay, which they could use as part of the welfare system set up at “Foxconn City.” The corporation took care of basic services, such as health care.

Industry analysts estimate that some of Foxconn’s campuses, such as the one in Zhengzhou, could house 300,000 to 400,000 workers.

Neil Shah, vice president at Counterpoint Research, said that in India, “it will depend on how big Foxconn wants to get and what business portfolio it has. It all depends on how it diversifies beyond phones,” he said.

Typically, building townships allows large manufacturers like Foxconn to keep workers close to their facilities and makes it possible for families to live on-site.

“Foxconn does provide housing for some of its workers in Taiwan, so its plans to do so in India are consistent with the company’s policies,” said Bob O’Donnell, president and chief analyst at TECHnalysis Research.

Moreover, given its “focus on female workers for the Indian factory, it seems like a great move to provide a sense of security to potential workers,” he added.

Foxconn’s aggressive expansion in India is seen as an important long-term move for the company and reflects its desire to reduce its dependence on its Chinese factories.

Sana Hashmi, a fellow at the Taiwan Asia Exchange Foundation, said there has been a marked increase in ties between India and Foxconn in recent times. Liu has made multiple visits to the country and was recently awarded the Padma Bhushan, India’s third highest civilian honour.

“This relationship has helped Foxconn strengthen and expand its presence in India,” he said. “The move comes at a time when Taiwanese companies are abandoning China due to operational difficulties and the interplay between politics and economics, making the Indian environment a more attractive option, especially for Foxconn.”