Foxconn debating $9B facility in Saudi Arabia for chips, EV parts: report
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Foxconn (OTC:FXCOF), which puts together Apple's (NASDAQ:AAPL) iPhones, is looking to diversify its business and build a $9 billion facility in Saudi Arabia that could produce processors, as well as electric vehicle parts and other electronics, The Wall Street Journal reported.
The news outlet noted that the Saudi government has received an offer from Foxconn, also known as Hon Hai Precision Industry, and is currently reviewing it. The offer includes building a dual-line foundry for technology and a wafer fab in Neom, a city Saudi Arabia is creating in the desert.
Foxconn (OTC:FXCOF) is the world's largest producer of iPhones, but in recent years, has moved to expand beyond smartphones, producing automotive parts for companies like Stellantis (NYSE:STLA) and others.
The Saudi Arabia embassy in the U.S. and Foxconn did not immediately return requests for comment from Seeking Alpha.
In addition, The Journal reported that the Saudi government is looking at the offer versus other offers that Foxconn has made elsewhere.
Foxconn has also spoken to the United Arab Emirates about building a facility there, The Journal added.
The Saudi government reportedly wants Foxconn to guarantee that at least two-thirds of the production would go to Foxconn's existing work so it is a profitable project. Foxconn (OTC:FXCOF) is said to be seeking incentives to build the plant, including financing, tax holidays and subsidies for power and water, The Journal added.
Foxconn (OTC:FXCOF) recently said that it was shutting its plant in Shenzhen, China, which produces Apple's (AAPL) iPhones, as the city deals with its worst COVID-19 outbreak in recent memory.