According to the Wall Street Journal, Foxconn Technology Group (2317.TW) is in negotiations with Saudi Arabia about collaborating on the construction of a $9 billion plant that would 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.
Reuters’ inquiries for comment were not immediately responded to either the corporation or Saudi Arabian authorities.
In recent years, Foxconn, the world’s largest contract electronics maker and a major Apple (AAPL.O) supplier, has expanded into fields such as electric vehicles (EVs) and semiconductors.
The company, along with other Taiwanese manufacturers like as 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 article, Foxconn is also in talks with the United Arab Emirates about considering locating the project there.
According to the article, 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 been making significant investments, including plans in Taiwan and India. However, it dramatically reduced a planned $10 billion facility in Wisconsin that former US President Donald Trump had referred to as the “eighth wonder of the world” last year.