Foxconn Plans to Build a $9 Billion Factory in Saudi Arabia

Foxconn Technology Group, the largest manufacturer of iPhones, is considering working with Saudi Arabia to build a $ 9 billion multipurpose facility capable of manufacturing other electronic devices such as microchips, electric vehicle components and displays. Other than Saudi Arabia, Foxconn is also in talks with the UAE about citing a project there.

The government of Saudi Arabia has bid for a company, formerly Hon Hai Precision Industry Co to build a two-line foundry for surface-mount technology and wafer manufacturing in Neom, a tech city which is being developed by Saudi Arabia. They said discussions about the project began last year.

Foxconn is looking to diversify its manufacturing sites amid rising tensions between China and the USA, putting the company in a vulnerable spot. 

Riyadh wants the company to send at least two-thirds of the foundry's production to Foxconn's existing supply chain to ensure that there are buyers of its products and that the project is ultimately profitable.

Foxconn has been expanding its business beyond Apple products in recent years, including expanding the activities of electric vehicles. It partnered with automakers such as Stellantis NV, a manufacturer of Jeep and Chrysler, and Fisker, a Los Angeles-based electric vehicle startup.