On Tuesday, the Tamil Nadu cabinet approved a substantial investment of ₹13,180 crore from Yuzhan Technology (India), a subsidiary of the Taiwanese contract manufacturer Foxconn. This investment is anticipated to create approximately 14,000 job opportunities within the state.
ET was the first to disclose on September 25 that Foxconn was assessing a potential investment of around $1 billion to establish an assembly unit focused on smartphone display modules in Tamil Nadu. This facility will be the first of its kind catering specifically to Apple’s needs.
Sources familiar with the ongoing developments revealed that Foxconn has secured around 500,000 square feet of space in a plug-and-play facility located within the ESR Oragadam Industrial & Logistics Park. This park is strategically positioned adjacent to Foxconn’s existing smartphone assembly unit near Chennai.
The decision by Foxconn signifies a strategic move toward a model where other contract manufacturers, such as Pegatron or Tata Electronics, could utilize components from this new unit instead of relying on imported modules assembled in China.
Foxconn’s investment stands out as the largest single investment among the 13 projects approved during the cabinet meeting. Collectively, these 14 initiatives will amount to an impressive total investment of ₹38,698.80 crore. This cabinet meeting marked a significant milestone, being the first since Udhayanidhi Stalin’s recent appointment as the deputy Chief Minister of Tamil Nadu.
The meeting was presided over by Chief Minister M.K. Stalin, who endorsed the investment proposal expected to generate employment for a total of 46,931 individuals in the state. State Finance Minister Thangam Thennarasu provided insights into the range of sectors that will benefit from these investments.
These sectors include the production of printed circuit boards (PCBs), low tension panels, mobile phone components, and casings. Additionally, the investments will support the manufacture of luxury vehicles and their spare parts, high-end equipment and software, defense apparatus, medical equipment, non-leather footwear, and the production of renewable energy sources such as green hydrogen and green ammonia.
There is also a focus on electric vehicles and telecommunication-related research and development. Among the various investments approved by the Tamil Nadu cabinet, a notable allocation of ₹9,000 crore was approved for Tata Motors, designated for the manufacture of Jaguar Land Rover vehicles in Ranipet.
Furthermore, Leap Green Energy Pvt Ltd will invest ₹10,375 crore across Thoothukudi, Virudhunagar, Tirunelveli, and Ramanathapuram. Additional investments include ₹1,000 crore from Freetrend Industrial India in Ariyalur, ₹1,395 crore from Kaynes Circuits India in Kancheepuram, ₹613.6 crore from Ascent Circuits in Krishnagiri, and ₹510 crore from Lucas TVS across Chennai, Chengalpattu, Kancheepuram, and Krishnagiri, among other projects.
