Foxconn's Rs 15,000 Crore Investment Dispute: Tamil Nadu Government Stands Firm Despite Denial

MK Stalin with the Foxconn team at his office

Chennai:

Following reports that Foxconn had denied making a fresh Rs 15,000-crore investment commitment in Tamil Nadu, Industries Minister T R B Rajaa reaffirmed on Monday that discussions for this project, expected to generate 14,000 high-value jobs, had indeed taken place.

Rajaa's statement addressed confusion stemming from Foxconn's reported claim that these investments weren't new. "These investments were firmed up after a year-long struggle," Rajaa explained.

A senior official from the Minister's team revealed to NDTV that Foxconn "does not consider this as fresh investment" because "talks have been ongoing for over a year."

Sources suggested the Taiwanese electronics giant might be "under pressure from a US tech company amid tariff concerns," potentially explaining their cautious language.

The controversy emerged after Foxconn's India representative Robert Wu met with Chief Minister MK Stalin in Chennai on Monday. Following their meeting, both the Chief Minister and the Industries Minister celebrated the development on social media.

Rajaa announced on X: "Foxconn will bring its next phase of value-added manufacturing, R&D integration, and AI-led advanced tech operations to Tamil Nadu. Foxconn commits Rs 15,000 crore in investments and 14,000 high-value jobs! Engineers, get ready!"

He also stated that Guidance Tamil Nadu, the state's investment promotion agency, would establish a dedicated Foxconn desk to facilitate the project.

Chief Minister Stalin characterized the announcement as part of the "Dravidian Model in action," adding, "This marks another milestone in our journey to make Tamil Nadu the manufacturing and innovation hub of South Asia."

However, the situation quickly became political, with opposition parties using Foxconn's denial to criticize the DMK government.

PMK leader Dr Anbumani Ramadoss described it as "a bag of lies that got exposed in half a day," demanding a white paper on investments announced by the state.

BJP spokesperson Narayanan Thirupathy called it "a Dravidian lie and a shame for Tamil Nadu."

In response, Rajaa urged the opposition "to stop making childish statements without understanding the geo-political issues involved and the difficulty in drawing investments into India".

The controversy has intensified as the Tamil Nadu Assembly is currently in session and the state prepares for the 2026 elections.