Foxconn, one of the primary supplier of Apple, is apparently in talks with Saudi Arabia regarding the construction of a new factory in the region. The company is mulling building a 9 billion US Dollar facility in the country.
According to a WallStreetJournal report, the supplier plans on setting up this site for the production of microchips, electric vehicle components, and other electronics as well. The report adds that Saudi Arabia is currently reviewing Foxconn’s offer to build a dual line semiconductor contract manufacturing factory, which is also simply known as a “foundry.” This new site will be situated in the region’s Neom. The city is known to be a tech focused city state that is currently being developed in the desert, as per sources close to the matter.
Unfortunately, the company and Saudi Arabian authorities have yet to officially comment on this news. For those unaware, Foxconn is a major supplier of the Cupertino based giant, but in recent times, it has been expanding its operations outside of consumer electronic products. The company is now diversifying its production to include electric vehicles as well, which has recently becoming popular in the automobile industry.
This news also arrives amid ongoing frictions between the US and China. Apart from Saudi Arabia, the firm is also planning on potentially building a production project in the United Arab Emirates as well. In other words, it plans on moving its production sites outside of China for technologies not related to consumer electronic gadgets.
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