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Taiwan firms in pact with Karnataka to invest $500 million

The companies are interested in setting up a Taiwan Electronic Manufacturing Cluster on a 100-acre plot in Devanahalli on the outskirts of Bengaluru

Taiwan-based Foxconn’s move to invest $5 billion over five years in Maharashtra seems to be just the start.

Close on its heels, Taiwan’s industry body for electrical and electronic component makers on Wednesday signed a pact with the Karnataka government to invest around $500 million (Rs.3,200 crore) and set up a manufacturing cluster near Bengaluru.

Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA) has over 3,000 companies as members and represents 90% of Taiwanese component manufacturers catering to information and communication technology companies.
The companies are interested in setting up a Taiwan Electronic Manufacturing Cluster on a 100-acre plot in Devanahalli on the outskirts of Bengaluru

“We are here to introduce our potential investors to the state,” said executive director of TEEMA Francis Tsai, leading a delegation of around 24 Taiwanese companies, including Getac Technology Corp., Mobiletron Electronics, Tyohm Electronic Works, Giantlok and Hua Wei Industrial.

The companies are interested in setting up a Taiwan Electronic Manufacturing Cluster on a 100-acre plot in Devanahalli on the outskirts of Bengaluru, near the airport.

The memorandum of understanding (MoU) between TEEMA and the Karnataka government is expected to fuel the state’s desire to be a key centre for electronic hardware manufacturing.

It will take at least six to nine months for the group to start production in Karnataka, as the members of the delegation will first have to get the approval of their respective companies back in Taiwan before going ahead with the investments.

The Taiwanese delegation has also proposed to set up a skill development and incubation centre in the cluster, Tsai said. The state expects the proposed project to create about 15,000 jobs in its first phase.

“Taiwan has an excellent ecosystem for electronics manufacturing and if there’s anything that they are short of anything, it is land. This is a high-end investment for the state with a future expansion in another 800-1,000 acres,” said Kaushik Mukherjee, chief secretary of Karnataka.

The state has also been seeking partnerships with countries such as Japan, Korea, China and Germany to set up dedicated clusters across the state.

source: livemint.com