Apple supplier Foxconn in talks with Saudi Arabia for building $9 billion facility
Mar 14, 2022: According to a report by Reuters, Foxconn Technology Group is in talks with Saudi Arabia about jointly building a $9 billion facility that could make microchips, electric-vehicle components and other electronics.
As per a Wall Street Journal report, Saudi Arabia is reviewing Foxconn’s offer to build a dual-line semiconductor contract manufacturing facility known as a “foundry” in Neom, a tech-focused city-state it is developing in the desert, the report said, citing people familiar with the matter.
Foxconn, the world’s largest contract electronics manufacturer and a major supplier to Apple, has expanded into areas including electric vehicles (EVs) and semiconductors in recent years. The company and other Taiwanese firms, such as TSMC, are trying to diversify their production amid trade tensions between the United States and China, which has affected the semiconductor industry.
In addition to Saudi Arabia, Foxconn is in talks with the United Arab Emirates, possibly setting up a project there, the report said.
According to the report, Riyadh wants the company to guarantee that it will ship at least two-thirds of the foundry’s production to Foxconn’s existing supply chain.
Officially known as Hon Hai Precision Industry, Foxconn is signing major investment agreements, including projects in Taiwan and India.
Last year, however, it swiftly rolled back a 10 billion planned factory in Wisconsin that former US President Donald Trump once called the “Eighth Wonder of the World.”
Stay tuned to BaaghiTV for latest news and Updates!
Pakistani engineers produce eco-friendly biodiesel with edible oil
