Foxconn, in talks with S.Arabia on a joint $9 billion factory!
The Saudis are conducting due diligence and bench-marking the offer against others that Foxconn has made for similar projects globally, WSJ reports
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The kingdom is trying to establish an industrial sector but has struggled to attract foreign investment
Foxconn Technology Inc, the biggest assembler of Apple Inc. iPhones, is in talks with Saudi Arabia about jointly building a $9 billion multipurpose facility that could make microchips, electric-vehicle components and other electronics like displays,
according to WSJ
The Saudis are conducting due diligence and benchmarking the offer against others that Foxconn has made for similar projects globally, WSJ reports.
Besides Saudi Arabia, Foxconn is also talking with the United Arab Emirates about potentially siting the project there, sources continue.
The Taiwan-based company has looked to diversify its manufacturing sites amid rising tensions between China and the U.S. that put it in a potentially vulnerable spot.
*Susan’s tweet on latest from Foxconn
#Apple supplier #Foxconn is in talks to build a $9 billion electronics factory in #SaudiArabia, according to people familiar with the matter$aapl ⬇️2% on #Foxconn #Shenzhen shutdown until at least this Sundayhttps://t.co/R3eAYZyYdU
— Susan Li (@SusanLiTV) March 14, 2022
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, and ensure there are buyers for its products so that the project is ultimately profitable.
On the other end, Foxconn is seeking large incentives including financing, tax holidays and subsidies for power and water in exchange for helping set up a high-tech manufacturing sector in the kingdom, as Saudi Arabia seeks to diversify its economy away from oil.
Foxconn has looked to diversify its business beyond Apple products in recent years, expanding its activities into EVs and by joining forces with auto makers such as Jeep and Chrysler maker Stellantis NV and electric-vehicle startup Fisker.
Foxconn has also purchased semiconductor facilities including,
Taiwan-based Macronix International, seeking to become a contract manufacturer of EVs for global brands.
