The land for the factory would be handed over to Foxconn by July 1, the government said, adding that the project, valued at Rs. 130 billion, is expected to create around 50,000 jobs.
Foxconn, the world’s largest contract electronics manufacturer, has set a target of manufacturing 20 million iPhones a year at the plant in Devanahalli, on the outskirts of the state capital and tech hub Bengaluru.
Apple has been shifting production away from China after the country’s strict COVID-related restrictions disrupted the production of new iPhones and other devices in the country. The tech giant is also looking to avoid a hit to its business due to tensions between Beijing and Washington.
A spokesperson for Foxconn did not immediately respond to a request for comment from Reuters.
Meanwhile, some applicants including Vedanta Foxconn JV are expected to re-apply for government incentives under the modified semiconductor scheme opening from June 1, according to sources. Under the Modified Semicon India Programme, the government has increased the financial incentive of 50 percent of the project cost for companies, consortia, joint ventures for setting up semiconductor fabs in India of any node (wafer size).
In the old scheme, the incentives varied on the basis of wafer node size.
Similarly, a fiscal incentive of 50 percent of the project cost is available for setting up of display fabs of specified technologies in India, a statement said on Wednesday.
© Thomson Reuters 2023
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