On Friday, the Nikkei business daily reported that the assembler of iPhone which is a product of Apple Inc, Foxconn of Taiwan now at its final stages of the talking with the local government of Zhuhai which is a city in China.
The talking is regarding the building of a chip plant there which will hold a total investment of $9 billion.
According to the report by the Nikkei which has cited the people who are familiar with the matter, the total investment for the project will be shouldered by the government of Zhuhai via the taxes as well as subsidies.
It would add up to about $9 billion which is equivalent to 60 billion yuan.
Zhuhai is a city in China near Macau in the southern province of Guangdong.
Amid the concerns of the on-going trade war between the United States and China which also now includes the concerns of China growing and thus expanding the production of microchips, this plan of constructing a cutting edge plant is in consideration of the above scenario.
According to the reporting of Nikkei which has cited an industrial source, for the project, Foxconn is expected to develop a joint venture with the government of Zhuhai as well as Sharp which is a Japanese electronics group that was acquired by Foxconn in 2016.
However, according to Reuters, a source closer to it stated that as of now Sharp is not involved in any of the talks.
According to the report, the construction is going be started as early as 2020 as per the plans of Foxconn which is formally known as Hon Hai Precision Industry Co Ltd.
Reuters stated that the representatives of Foxconn were not available immediately so as to comment on the matter.
Source: Reuters, Nikkei
