Supplier of Apple Inc., Foxconn Technology Group is apparently planning with Saudi Arabia to collectively build a $9 billion facility in the country. The factory would be dedicated to making microchips, along with components of electric-vehicles. They would be also be dedicated to manufacturing other electronics. The news was first reported by the Wall Street Journal on Monday, March 14.
Saudi Arabia is in the process of looking into the technology group’s offer of developing this contract. The contract mentions the building a dual-line semiconductor manufacturing unit. The facility would essentially be referred to as a “foundry,” in Neom. Neom is mainly a city-state that is tech-focused that is in development in the desert.
Neither the tech company, nor the authorities from Saudi Arabia acknowledge any requests made by reporters for a comment on the situation. There is still yet to be a confirmation on whether the discussion will be put into effect.
Entities behind the project:
A major supplier of Apple, Foxconn has come forward as the largest contract electronics manufacturer in the world. The technology group has presently spread itself into areas that are popular and upcoming. Foxconn has expanded itself sectors of electric vehicles and semiconductors in the recent past.
This technological firms, along with other Taiwanese companies such as Taiwan Semiconductor Manufacturing Company (TSMC) have had similar aims. They have targeting to expand their spectrum of manufacture amid the trade tensions between the United States and China. These hostilities have greatly affected the industry of semiconductors.
Other than Saudi Arabia, Foxconn is additionally in talks with the United Arab Emirates. They also aim to potential set up a similar project there as part of their diversity project.
The capital, Riyadh is expecting the firm to provide them with an assurance with regards to its future productions. They want a guarantee that they would direct a minimum of two-thirds of the production of the foundry into the existing supply chain of Foxconn.
Foxconn Technology Group is formally referred to as Hon Hai Precision Industry Co Ltd. The firm has been in works of signing large investment deals, including projects in India and Taiwan. However, in 2021, it majorly scaled back a planned a factory of $10 billion. The factory was once referred to as “the eighth wonder of the world” by former President Donald Trump and was situated in Wisconsin.
The report said:
Saudi Arabia is trying to establish an industrial sector as part of Crown Prince Mohammed bin Salman’s plans to reshape the economy by establishing new industries to complement oil income as the world transitions to renewable energy.