Has Tech Giant Foxconn Really Signed Rs 1600-Cr Deal With Tamil Nadu Govt?

Two days after the Tamil Nadu government announced that it has signed a deal with Taiwan's Foxconn, a subsidiary of tech giant Foxconn said that it had not signed any agreement to invest 1,600 crore ($194.6 million) in the state, China's Securities Times reported on Tuesday.

The Tamil Nadu government on Monday said that signed a deal with Foxconn for a new electronic components manufacturing facility that would create 6,000 jobs.

"We did not sign any investment agreement," FII was quoted as saying by the Securities Times newspaper. It has to be noted that the company had issued a statement in July refuting similar "rumours."

On his Twitter handle, Chief Minister M K Stalin on Monday said the LoI was signed, in his presence, between the state government and Foxconn Group represented by its chairman Young Liu. State Industries Minister T R B Rajaa, Chief Secretary Shiv Das Meena and senior officials participated.

"Was delighted to meet the Foxconn Group Chairman Mr.Young Liu and his team. Various investment opportunities in Tamil Nadu were discussed. Investment commitment to establish a mobile component manufacturing facility in Kancheepuram district for Rs 1600 crore with a potential employment for 6000 persons was signed in my presence," the Chief Minister said in the tweet.

"We also discussed further investments in EV and electronic components. Another milestone in our ambition to make TN the new emerging electronics manufacturing hub of Asia!" the Chief Minister further said.

The Industries Minister said termed it as "big news and a proud moment for Tamil Nadu," and said, "Foxconn's repeated investments and expansion plans in Tamil Nadu are a testament to the state being the top choice for manufacturing in India for major companies across the world. This is a major achievement for the state."

On Twitter, the Minister said, "Manufacturers who have seen immense success in Tamil Nadu over the past many years know that by investing more in the state they will only gain more. This also illustrates the trust global investors have in the leadership of Hon'ble Chief Minister of Tamil Nadu Thiru @MKStalin avargal."

With this proposed investment and many more to come, Tamil Nadu is poised to not only remain the top electronics exporter in the country but also significantly increase its electronics exports in the coming years. "This will play a critical role in attaining our Honourable Chief Minister Thiru @MKStalin avargal's ambition of #OneTrillionUSD economy in Tamil Nadu," he said.