According to the Wall Street Journal, Foxconn Technology Group is in negotiations with Saudi Arabia about collaborating on the construction of a $9 billion plant that will manufacture microchips, electric-vehicle components, and other electronics.
According to persons familiar with the situation, Saudi Arabia is examining Foxconn’s offer to establish a dual-line semiconductor contract manufacturing facility known as a “foundry” in Neom, a tech-focused city-state it is creating in the desert.
In recent years, Foxconn, the world’s leading contract electronics maker, and a major Apple supplier have expanded into sectors such as electric vehicles (EVs) and semiconductors. The company, along with other Taiwanese manufacturers like TSMC, are attempting to diversify their manufacturing in the midst of trade tensions between the United States and China, which have harmed the semiconductor sector.
According to the report, in addition to Saudi Arabia, Foxconn is in talks with the United Arab Emirates about potentially locating the project there. Riyadh wants the business to promise that at least two-thirds of the foundry’s output would be directed into Foxconn’s existing supply chain.
Foxconn, formerly known as Hon Hai Precision Industry Co Ltd, has made significant investments, including plans in Taiwan and India. However, it severely reduced a planned $10 billion plant in Wisconsin, which former US President Donald Trump previously referred to as the “eighth wonder of the world.”