Taiwan based Foxconn, the giant manufacturer which supplies Apple and other leading tech companies, plans to invest $5 billion over five years on a new manufacturing facility in India.
Chief Minister of the state of Maharashtra Devendra Fadnavis and Foxconn founder Terry Gou have signed a memorandum of understanding on the investment, which will lead to the construction of a semiconductor factory.
The investment in India could help offset some of Foxconn’s problems in China with wage inflation, according to the Times of India.
Gou said that the company was looking for local partners for the new facility.
Gou had said previously that he was personally in touch with governments of several India’s states to set up manufacturing units in the country, which is the world’s fastest growing smartphone market.
At peak production times, Foxconn has about 1.3 million people working for it, making it one of the largest employers in the world. The new deal is expected to be worth some 50,000 jobs to India.
India’s prime minister Narendra Modi wants to make India a global manufacturing hub, and even has a slogan for his campaign: “Make in India”. Economic growth has been gathering strength since Modi came to power last year, but the country still needs to create tens of millions of jobs a year to support its population which is now over 1.2 billion.
Foxconn has been in the spotlight in recent years over conditions in its factories, which supply parts to Apple, Blackberry, and Amazon, among other customers. Its factories have been the scene of riots. Five years ago the company installed safety nets at one of its facilities after a number of workers jumped to their deaths.
A version of this article originally appeared on Business Insider India.
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