Foxconn, a significant Taiwanese electronics manufacturer, signed an agreement in principle with the Karnataka government to invest Rs 5,000 crore in two projects that are expected to create 13,000 jobs.

Two manufacturing initiatives will be started by Foxconn, one of which will involve a partnership with the American business Applied Materials.

On July 31, the Karnataka government representatives signed the LOI after meeting Foxconn chairman Young Liu at a luxury hotel in Chennai.

Foxconn is reportedly contemplating two projects in the state: the fabrication of phone enclosures and semiconductor equipment, according to the Karnataka Industries Department.

“Foxconn is establishing a plant for producing smartphone subassembly parts, in particular mechanical enclosures for iPhones. This project is expected to cost around $350 million (around Rs. 3,000 crore) and create 12,000 employment. According to a statement from the industries department, the corporation is currently assessing appropriate land parcels in and around Bengaluru.

On a project to produce machinery for semiconductor production, Foxconn and Applied Materials are working together.

It is predicted that this endeavor will create employment prospects for about 1,000 individuals at a cost of $250 million (Rs 2,000 crore), according to the release.

“FoxSemicon Integrated Technologies manufactures sophisticated subassemblies for Applied Materials, one of the largest semiconductor and display equipment manufacturers. Separately, Applied Materials has recently announced a $400 million setup of its collaborative engineering center in India at Bengaluru that will work with both domestic and global suppliers to drive Semiconductor manufacturing equipment R&D for the next level of innovation and commercialization of technologies”, the statement said.

The Haralur Muddenahalli hi-tech aerospace and defence park-Phase II in Bengaluru rural district, where Foxconn has requested a 35-acre land block, is where this project is most likely to be concluded.

The Karnataka government and the chairman of Foxconn have met, and this meeting “holds immense promise for the economic landscape of the state, with potential benefits in terms of employment generation, technology advancement, and overall socioeconomic growth.” MB Patil, minister of industries, stated.