Foxconn will receive an incentive of INR 6,970 crore from the Karnataka government under the state’s Electronics System Design and Manufacturing (ESDM) policy. The announcement was made by Karnataka Chief Minister Siddaramaiah during the state budget speech on March 7.
Foxconn is in the process of setting up a smartphone manufacturing facility in the Devanahalli Industrial Area, with a capital investment of INR 21,911 crore. The company has reportedly acquired 300 acres of land for the facility in the ITIR Industrial area, spanning Doddaballapura and Devanahalli taluk in Bengaluru Rural district.
The Karnataka government previously held discussions with Foxconn’s CEO and chairman, Young Liu, in August 2024 regarding investment plans in the state.
In addition to the Foxconn incentives, the state budget also introduced a fund-of-funds (FoF) worth INR 300 crore and an additional INR 100 crore corpus to support deeptech startups in Karnataka. These investments are part of the Local Economy Accelerator Programme (LEAP), which aims to create employment in Tier II and Tier III cities, with a target of generating five lakh jobs across the state. The initiative seeks to strengthen startup ecosystems in regions such as Mysuru, Mangaluru, Hubballi-Dharwad, and Kalburgi.
The announcement comes as Apple expands its manufacturing operations in India, with suppliers reportedly beginning exports of electronic components for MacBooks, AirPods, and iPhones to China and Vietnam.