Foxconn, the world's biggest contract electronics manufacturer and assembler of iPhones, has bought a huge tract of land on the outskirts of Bengaluru.
The key Apple supplier has stated this in its filing at London Stock Exchange. The news has come as a shot in the arm to the ruling BJP ahead of crucial Assembly elections scheduled on May 10.
Investment by Foxconn in the state had run into controversy following the opposition parties questioning ruling BJP and calling it a publicity stunt.
The ruling BJP had announced the establishment of an iPhone assembling unit by Foxconn in Bengaluru. Later, the claim was disputed by the company.
An embarrassed Chief Minister Basavaraj Bommai had released the letter of appreciation by Foxconn to defend against the attacks by the opposition.
According to latest reports, the company made the statement in this regard at London Stock Exchange. According to the statement, the 1.2 million square metre (13 million square foot) plot has been acquired near Devanahalli located close to Bengaluru International Airport. According to sources, the land was bought for Rs 106.24 crores.
This is seen as part of the company's strategy to look for alternative production destinations away from China following rigid Covid rules, the sources said.
The Karnataka State High-Level Clearance Committee (SHLCC) had approved Foxconn investment proposal in March. The company proposed to manufacture mobile devices.
The official statement from the Large and Medium Industries Ministry said that Foxconn Hon Hai Technology India Mega Development Private Ltd (FHH) would invest Rs 8,000 crore with employment opportunities for 50,000 people.
The delegation led by Foxconn CEO and Chairman Young Liu had visited the state and held a meeting with Bommai in Bengaluru. The appreciation letter released by CM's office was written by Foxconn CEO to Bommai and termed their visit a great success.
JD-S leader and former CM H.D. Kumaraswamy had asked the ruling BJP to clarify whether the announcement regarding Foxconn by the Chief Minister was a publicity stunt or if any MOU was signed.
He had earlier maintained that the Karnataka BJP government had the policy of maximum publicity and zero result policy.
"Chief Minister Basavaraj Bommai and two other ministers took free publicity by stating that iPhone manufacturer Foxconn company from Taiwan has come to the state for investment. They held the signed letters in their hands stating the MOU had been signed and posed before the media," Kumaraswamy had stated.
The Taiwanese company, on the other hand, told the media that there are no definitive agreements made to invest in Karnataka. At this, Kumaraswamy had said that if this is the case, what really happened in the presence of CM Bommai and demanded the government clarify the matter.