Apple supplier Foxconn considering setting up new factory in Saudi Arabia

Foxconn, one of Apple’s main suppliers, is in talks with Saudi Arabia to build a new factory in the region, according to reports. The company plans to build a US$9 billion facility in the country.

According to the Wall Street Journal’s report, Foxconn will use this facility for the production of microchips, electric vehicle components and other electronics. The report states that Saudi Arabia is currently reviewing Foxconn’s proposal to establish a dual-track semiconductor contract manufacturing plant, also known as the “foundry”. This new facility to be built will be located in the Neom region. According to sources close to the subject, Neom is known to be a technology-driven city-state currently being developed in the desert.

Foxconn’s next target United Arab Emirates

For now, the giant company and Saudi Arabian authorities have not yet made an official comment on this news. he hasn’t. Foxconn is an important supplier to Cupertino-based technology giant Apple. But recently it has been expanding its operations beyond consumer electronics products. The company is diversifying its production to include electric vehicles that have recently become popular in the automobile industry.

This news also surfaced amid ongoing frictions between the US and China. Besides Saudi Arabia, Foxconn also plans to potentially build a production project in the United Arab Emirates. In other words, the company plans to move production facilities outside of China for technologies not related to consumer electronic devices.