A Foxconn subsidiary is in discussions to invest up to $200 million to construct a new electronic component manufacturing facility in the southern region of India's Tamil Nadu state.

To explore investments in the state, Brand Cheng, CEO of Foxconn Industrial Internet (FII), and other company representatives met with Tamil Nadu officials, including the chief minister, last week, said the government.

A plan to initially invest $180 million to $200 million in the facility has been communicated with state officials by FII, a manufacturer of communication, mobile network, and cloud computing technology.

In Tamil Nadu, Foxconn already operates a sizable site where it assembles Apple's iPhones.

Foxconn hopes to finish the facility by 2024, with additional investments anticipated after that.

Foxconn is also in discussions with the state of western Gujarat as it seeks to enter India's semiconductor market. This week, the government will host an annual semiconductor event, and its chairman Young Liu is scheduled to speak there.

In Gandhinagar, Foxconn Chairman Young Liu will attend a conference that PM Modi will inaugurate.

The incident occurs only a few weeks after Foxconn withdrew from a $19.5 billion semiconductors joint venture with Vedanta, a company supported by billionaire Anil Agarwal, claiming "the project was not moving fast enough." The large Taiwanese electronics manufacturer stated that it was attempting to submit a separate application for the establishment of a semiconductor facility in India.

A new facility will require an investment of $1.07 billion, according to reports made last week by the Karnataka state government in south India.

The rising demand for chips implies that the local market would be worth $80 billion by 2028, about four times its current $23 billion size, and India aims to position itself as a semiconductor manufacturing centre to compete with Taiwan.

Modi's strategy, though, has so far failed. Foxconn and the local firm Vedanta Ltd expressed interest in the $10 billion plan for domestic chip production that his government unveiled in 2021, but none of these offers have come to fruition.