By Praveen Paramasivam and Munsif Vengattil

CHENNAI, India (Reuters) – A Foxconn subsidiary is in talks with India’s Tamil Nadu state to speculate as much as $200 million to construct a brand new plant for digital elements within the southern area, two sources with direct information instructed Reuters on Wednesday.

Brand Cheng, CEO of Foxconn Industrial Internet (FII), and different firm representatives final week met Tamil Nadu officers together with its chief minister to debate investments within the state, the federal government mentioned in an announcement after the assembly, with out elaborating.

FII, which makes communication, cellular community and cloud computing tools, has shared a plan with state officers to initially make investments $180 million to $200 million within the facility, mentioned one of many sources.

Foxconn, the world’s largest contract electronics producer, and a spokesperson for Tamil Nadu’s industries division declined to remark.

Foxconn already has a sprawling campus close to Chennai metropolis in Tamil Nadu the place it assembles Apple’s iPhones.

The sources, who declined to be named because the talks are personal, didn’t elaborate on the plan or say if components made on the proposed facility can be utilized in iPhones or one other firm’s merchandise.

Foxconn goals to finish the plant by 2024, with additional investments anticipated afterward, the primary supply mentioned.

A last choice has not been made, each sources mentioned.

Foxconn can be in talks with western Gujarat state because it eyes entry into India’s semiconductor sector. Its chairman Young Liu is anticipated to talk at an annual semiconductor occasion hosted by the federal government this week.

Last week, Karnataka state authorities in south India mentioned it held talks with FII, which had dedicated to speculate $1.07 billion for a brand new plant.

(Reporting by Praveen Paramasivam in Chennai and Munsif Vengattil in Bengaluru; Additional reporting by Sarah Wu in Taipei; Editing by Aditya Kalra and Richard Chang)