Telangana CM K Chandrasekhar Rao foxes Karnataka CM Basavaraj Bommai, whips out Foxconn chief Young Liu's letter

HYDERABAD: Amid boisterous claims by Telangana and Karnataka governments that Taiwanese contract manufacturing giant Foxconn would set up manufacturing facilities and create 1 lakh jobs, the Telangana government on Monday sought to clear the confusion by releasing a letter from Foxconn chairman Young Liu to CM K Chandrasekhar Rao, reiterating his commitment to manufacture in Telangana.Liu had met both Telangana CM KCR and Karnataka CM Basavaraj Bommai last week.

In his letter on Monday to KCR, Liu said: "As discussed with you during our meeting on March 2, Foxconn is committed to setting up a manufacturing facility in Kongara Kalan and I seek support of your team in operationalising the Kongara Kalan Park as early as possible."

TOI was first to report that Kongara Kalan in Hyderabad's outskirts was showcased by the Telangana government during Liu's day-long visit to the city to inaugurate India's largest prototyping centre T-Works here.
To scotch speculation on Foxconn's plans, the Telangana chief minister's office also issued a detailed release, stating Liu's letter "explicitly confirmed" Foxconn's commitment to setting up a facility in Kongara Kalan. This amply clears doubts on whether Foxconn was in any dilemma to set up the manufacturing facility in Telangana, KCR's office said.
Karnataka CM Bommai too released a letter, emphasising Foxconn's commitment to his state. "My team would be in close contact with your team to take this forward and ensure successful grounding of 'Project Elephant' in Bengaluru. I am confident the project will lay a strong foundation for other multiple plans, spanning mechanical, precision machinery, electric vehicle, IC design and semiconductor segments to consider your state as a potential investment destination."
While Telangana government announced last Thursday that an MoU was inked with Foxconn to set up an electronics manufacturing facility and generate 1 lakh jobs in 10 years, a day later, Karnataka CM Bommai tweeted that his state had signed an agreement with Foxconn to manufacture Apple products at Bengaluru with a potential to create 1 lakh jobs. Foxconn contract manufactures for multiple players, including Apple, Sony, Nokia and Xiaomi.
State officials attribute the ambiguity around Foxconn's manufacturing plans to a fluid global geo-political situation, including upcoming elections in Taiwan.
Talking to TOI, Telangana electronics director Sujai Karampuri said: "The discussion is for 196 acres at Kongara Kalan and Foxconn will definitely kick off construction before year-end. Foxconn is getting into new products as part of its 3+3 strategy to build future products for which they are looking at India and Telangana."
As part of its 3+3 strategy, Foxconn is eyeing a major play in electric vehicles, digital health and robotics as well as AI, semiconductors and nextgen communications technology.
While Foxconn has already announced plans to set up a display fabrication and semiconductor facility in Gujarat in partnership with Vedanta group, it already makes Apple products at a facility in Tamil Nadu.