iPhone manufacturer Foxconn will receive an incentive of INR 6,970 Cr under the state’s Electronics System Design and Manufacturing (ESDM) policy
Siddaramaiah made the announcement while delivering the state budget speech on Friday (March 7)
In his budget speech, Siddaramaiah also announced an INR 300 Cr fund-of-funds (FoF) and an additional INR 100 Cr corpus to support deeptech startups in the state
Karnataka chief minister (CM) Siddaramaiah has said that iPhone manufacturer Foxconn will receive an incentive of INR 6,970 Cr under the state’s Electronics System Design and Manufacturing (ESDM) policy.
Siddaramaiah made the announcement while delivering the state budget speech on Friday (March 7).
With this, the Taiwanese giant will become the first electronics company to receive incentives of this size from the state government. This comes at a time when Foxconn is looking to operationalise a smartphone manufacturing plant in Karnataka’s Devanahalli Industrial Area with a capital investment of INR 21,911 Cr.
This comes months after officials of the Karnataka government met Hon Hai Technology Group’s (Foxconn) CEO and chairman Young Liu in August 2024 to discuss plans to ramp up company’s investments in the state and other future expansion opportunities.
At the time, it was announced that the company was setting up a mobile phone assembly unit in Karnataka. For the facility, the company reportedly acquired 300 acres of land in the ITIR Industrial area, spanning Doddaballapura and Devanahalli taluk in Bengaluru Rural district.
Meanwhile, in his budget speech, Siddaramaiah also announced an INR 300 Cr fund-of-funds (FoF) and an additional INR 100 Cr corpus to support deeptech startups in the state. “INR 300 Cr for Fund-of-Funds and a corpus fund of INR 100 Cr for deeptech development will be earmarked,” he added.
The investments are part of the government’s broader Local Economy Accelerator Programme (LEAP), which will look to create jobs in Tier II & III cities in the state. The initiative is expected to generate 5 Lakh jobs across the state and develop alternate startup ecosystems in areas such as Mysuru, Mangaluru, Hubballi-Dharwad and Kalburgi.
The development comes at a time when Apple is aggressively scaling up its production in India. Last week, it was reported that the iPhone maker’s suppliers in India have started exporting electronic components of MacBooks, AirPods, iPhones to China and Vietnam for the first time.