International Business: Foxconn ‘plans $9bn factory in Saudi Arabia’ – Gulf Digital News

International Business: Foxconn ‘plans $9bn factory in Saudi Arabia’ – Gulf Digital News

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, the Wall Street Journal reported yesterday.

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.

The company and Saudi Arabia authorities did not immediately respond to Reuters requests for comment.

Foxconn, the world’s largest contract electronics manufacturer and a major Apple supplier, has expanded into areas including electric vehicles (EVs) and semiconductors in recent years.

Diversify

The company and other Taiwanese firms like TSMC are looking to diversify their production amid US-China trade tensions, which have impacted the semiconductor industry.

Besides Saudi Arabia, Foxconn is also talking with the UAE about potentially situating the project there, the report said.

Riyadh wants the company to guarantee that it would direct at least two-thirds of the foundry’s production into Foxconn’s existing supply chain, according to the report.

Foxconn, formally called Hon Hai Precision Industry Co Ltd, has been signing large investment deals, including plans in Taiwan and India.

Last year, however, it drastically