Taiwan-based Hon Hai Precision Industry Co Ltd (trading as Apple iPhone manufacturer Foxconn) (www.foxconn.com) is to invest $5 billion in a new plant in the western Indian state of Maharashtra.

Chairman Terry Gou signed a Memorandum of Understanding with Maharashtra’s chief minister, Devendra Fadnavis, in Mumbai earlier this month.

Speaking on Twitter, Mr Fadnavis said: “Extremely elated to witness the signing of a $5 billion MoU between the government of Maharashtra and Foxconn, with employment generation of 50,000.”

Hon Hai is the world’s largest manufacturer of computer components; it also assembles products for Sony and Nokia.

A spokesman said that setting up a facility in India will help cut its labour costs.