The Congress government in Telangana is in talks with Foxconn Interconnect Technologies, a leading third-party electronics manufacturer, to bring more investments than what it has already committed to the State. 

“We are engaged in conversations to convince Foxconn companies to set up a display fab manufacturing facility, semiconductor OSAT facility, semiconductor fab, EV manufacturing facility and a notebook production facility,” a senior State government official said.

A group of senior officials of the firm, led by its India representative V Lee, met the new Telangana Chief Minister A Revanth Reddy on Tuesday.

They briefed the Chief Minister about the progress in the airpod manufacturing facility at Kongarakalan near Hyderabad. The company had announced investments to the tune of $500 million in Hyderabad.

The facility is under construction and is expected to commence commercial production in May 2024. Foxconn Chairman Young Liu visited Hyderabad in March 2023 and signed an agreement with the State government to set up the facility. In the first phase, it would provide employment to 25,000 people. 

“The talks regarding establishment of a Display Fab manufacturing facility are underway. We have identified a site. Discussions are on around incentives. A team from Japan visited Hyderabad last month to review the land for the project,” he said.

“Foxconn is evaluating partners such as HCL for OSAT (Outsourced Semiconductor Assembly and Test) and Telangana is actively pursuing the proposed project. We hosted a HCL team and discussions are on to take it forward,” he said.

“Discussions are also on around a semiconductor fab. We are keen to host the semiconductor fab. Foxconn is currently evaluating partners from India such as MEIL and JSW for setting up an electric vehicle manufacturing facility. Talks are on on this front too,” he said.

Similarly, the State was in talks with the company for setting up a notebook and components manufacturing facilities.

The official said Foxconn would support the State government as it engaged with its ecosystem partners.

What Foxconn wants

The Taiwanese firm has asked for a developed land parcel with clear title which is very close to the city and the international airport, at a subsidised price. It also wants good road connectivity in addition to power and water supply.

Meanwhile, the State government has agreed to facilitate and provide all approvals under its purview. “We will also provide best-in-class incentives package and identify suitable land parcel,” he said.

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