Taiwan’s Foxconn Technology Group, a key supplier to Apple Inc, on Monday pledged to invest Rs 1,600 crore to set up a high-end electronics component manufacturing unit in Tamil Nadu’s Kanchipuram district generating jobs for about 6,000 people.
The investment to be made by Foxconn Industrial Internet (Fii) was finalised at a meeting between Foxconn Chairman Young Liu and Tamil Nadu Chief Minister M K Stalin at the Secretariat here, following which a Letter of Intent was signed between the two sides. Fii is the largest subsidiary of Foxconn Technology Group.
Sources told DH that Fii will set up a greenfield state-of-the-art manufacturing unit to produce electronics components for mobile phones in the Kanchipuram district. This new facility will be independent of Foxconn’s units in Sriperumbudur that currently assemble flagship Apple iPhones for the domestic and international markets.
Foxconn Industrial Internet (Fii) to invest Rs 1,600 crore in #TamilNadu to set up a high-end electronics component manufacturing plant.
— Sivapriyan E.T.B | சிவப்பிரியன் ஏ.தி.ப (@sivaetb) July 31, 2023
DH had on July 20 reported that Fii invest in Tamil Nadu after a meeting between Stalin and the company’s CEO. The development comes weeks after Fii proposed to set up its unit in Karnataka’s Tumakuru near Bengaluru at an estimated cost of Rs 8,800 crore.
“Foxconn’s repeated investments and expansion plans in Tamil Nadu are a testament to the state being the top choice for manufacturing in India for major companies across the world. This is a major achievement for the state,” Industries Minister T R B Raaja said.
With this proposed investment and many more to come, Tamil Nadu is poised to not only remain the top electronics exporter in the country but also significantly increase its electronics exports in the coming years, the minister added.
Last week, Pegatron, another major contract manufacturer of Apple Inc, indicated that it will undertake the Phase-2 of its manufacturing unit near Chennai.
A key supplier of Apple, Foxconn is being wooed by Karnataka and Tamil Nadu among other states with the Taiwanese electronics major scouting locations for its own semiconductor assembly plant, for which it applied with the Union Government after the break-up with Vedanta.
Foxconn has a significant presence in Tamil Nadu with its Sriperumbudur plant assembling high-end iPhone 14, and iPhone 13, even as the company continues to expand the massive facility, 50 km from Chennai, further as Apple Inc plans to move a significant portion of its China operations to India. It is also planning to assemble iPhones in Karnataka and Telangana.
The development also comes close on the heels of the state emerging as the no.1 in the country in electronics exports at $5.37 billion in the 2023 fiscal, moving from the fourth position in fiscal 2022. Ramping up and launch of production by Foxconn, Pegatron, and home-grown Tata Electronics Private Limited (TEPL) helped the state pip Uttar Pradesh, Karnataka, and Maharashtra, officials said.
The state, which is already home to the top 16 electronics manufacturers, including Nokia, Samsung, Flex, Dell, Motorola, Salcomp, HP, and Foxconn, wants the electronics industry to be on par with automobiles which accounts for 37.6 per cent of the country’s automobile and auto component exports, apparel (30.8 per cent) and footwear (46.4 per cent).
The state has two exclusive Special Economic Zones (SEZs) for Electronics and Hardware manufacturing in Sriperumbudur, 50 km from here, and in Oragadam, 70 km from here, spread over 800 acres.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
