WSJ: Foxconn talks to Saudi Arabia about chip factory

Foxconn is talking to Saudi Arabia about a factory where it could, among other things, make computer chips and screens, business newspaper The Wall Street Journal reports based on insiders. The Taiwanese company, which assembles iPhones for Apple, but also game consoles for Nintendo and Sony, wants to invest $9 billion in it. It turned out to be about 8.2 billion euros.

Foxconn would like to receive financing for the investment in the plant which should be located in the newly built city of NEOM. The company also wants tax benefits and subsidies for the use of electricity and water. Saudi Arabia, in turn, demands that Foxconn itself use two-thirds of factory products so that there is a guaranteed buyer.

A deal that will benefit both Foxconn and Saudi Arabia. Foxconn wants to become less dependent on production in China due to the tensions between that country and the United States in recent years. Moreover, she wants to do more than just assemble electronics and has set her sights on building electric cars. Saudi Arabia is trying to create a technology sector to reduce its dependence on oil.

By the way, Foxconn has other options if you can’t come to an agreement. The company, officially called Hon Hai Precision Engineering, is in talks with the United Arab Emirates about a potential plant in that country.