Investment Discussions During Chennai Drive Could Boost State’s Electronics and EV Sector
A casual yet strategic drive between Foxconn Chairman Young Liu and Tamil Nadu’s Industries Minister TRB Rajaa in August 2024 is now being viewed as one of the most significant investment pitches made by an Indian state in recent years. The drive, which went viral on social media, might soon translate into major investment announcements for Tamil Nadu, particularly in the electronics and electric vehicle (EV) sectors.
The highly publicized event saw Rajaa personally receiving Young Liu at Chennai Airport and driving him to the inauguration of an Industrial Housing Facility in Vallam Vadagal—a key manufacturing hub for the state. While the details of their discussion remained undisclosed at the time, Rajaa has now revealed that their conversation was centered around value addition in critical minerals, strengthening energy storage capabilities, and boosting the local component ecosystem.
Foxconn’s Expansion Plans in Tamil Nadu: A Major Milestone for Indian Manufacturing
While addressing the Business Standard Tamil Nadu Round Table 2025, Rajaa shared insights into his conversation with Young Liu.
“We might soon have very good news, hopefully, coming out of that drive. We spoke about Tamil Nadu’s capabilities, the need for more value addition in critical minerals, and enhancing existing strengths in energy storage. Young Liu also discussed his vision for the future of energy storage, and we explored ways to build clusters for component manufacturing to support local production.”
The minister further emphasized Tamil Nadu’s efforts to localize manufacturing by increasing the domestic availability of essential components.
“For that manufacturing, we wanted to bring more of the components into India to increase the percentage of locally sourced parts, and we have successfully achieved progress in that direction,” Rajaa added.
Unconventional Investment Pitch: How One Drive Became a Game-Changer
The viral drive, which initially seemed like a casual moment between the two leaders, turned out to be a significant business discussion.
“I was just wondering why that single drive went viral,” Rajaa noted. “In my mind, it was a very casual request. I said we have one hour, and I would rather spend it with the Foxconn chairman. So, I personally drove my car, removed the driver, and included the Managing Director of Guidance Tamil Nadu (the state’s investment promotion agency) in the discussion.”
This unconventional approach to investor engagement has sparked curiosity among industry insiders, as it underscores the importance of personalized outreach and informal discussions in business negotiations.
Foxconn’s India Strategy: Moving Beyond Smartphones
Foxconn, the world’s largest electronics contract manufacturer, has been expanding its presence in India beyond its traditional smartphone assembly business. There have been multiple reports indicating that the company is looking at diversifying into electric vehicles, battery manufacturing, and digital health.
Foxconn is already a major supplier for Apple, manufacturing iPhones in Tamil Nadu. The company has been actively increasing its footprint in India to counter supply chain disruptions caused by geopolitical tensions and diversify beyond China.
As part of its expansion strategy, the company is reportedly planning to establish a Battery Energy Storage System (BESS) plant in Tamil Nadu. The company is exploring land options near Manalur in Tiruvallur district, around 50 km north of Chennai. If confirmed, this would be Foxconn’s second-largest battery manufacturing facility, reinforcing Tamil Nadu’s status as a hub for EV and energy storage solutions.
Tamil Nadu’s Emerging Role as an Electronics and EV Hub
Tamil Nadu has been aggressively promoting itself as a preferred investment destination for global manufacturers, particularly in the electronics, semiconductor, and EV sectors. The state has attracted major investments from companies like Apple, Pegatron, Tata Electronics, and Ola Electric, strengthening its reputation as a key manufacturing hub in India.
During his visit in August, Young Liu had expressed Foxconn’s commitment to India, stating:
“We are eager to bring our 3+3 future industry initiative to India.”
This initiative focuses on three major industries—EVs, digital health, and robotics—and three key technological areas—AI, semiconductors, and next-gen communications.
Potential Investments on the Horizon
With the latest revelations about the discussions between Young Liu and TRB Rajaa, speculation is growing about a significant investment announcement from Foxconn in the coming months. If finalized, this could further strengthen Tamil Nadu’s position as a leading electronics and EV manufacturing destination in India.
The viral drive that captured public attention last year now appears to have been much more than just a symbolic event. It may soon translate into groundbreaking investments that could reshape Tamil Nadu’s industrial landscape.
