Taiwan’s Foxconn plans US$9 billion chips project in China

Zhuhai plan comes amid U.S.-China trade tension

Foxconn Technology founder Terry Gou.

Foxconn Technology founder Terry Gou. (By Central News Agency)

TAIPEI (Taiwan News) - The Foxconn Technology Group is planning a US$9 billion (NT$276 billion) chips project in the Chinese city of Zhuhai despite concern over the trade war between the United States and China, the Nikkei Asian Review reported Friday.

While earlier, Foxconn, also known as Hon Hai Precision Technology in Taiwan, unveiled projects in the state of Wisconsin, the latest plan will see the massive Apple subcontractor team up with Japan’s Sharp Corporation, which it owns, and with the city government of Zhuhai, in the province of Guangdong close to Macau.

Work on the factory should start by 2020, with Sharp being the only company owned by Foxconn which has experience with semiconductor technology, even though it dropped out of the sector in 2010.

Foxconn was reportedly only willing to say that it signed a Memorandum of Understanding with the city of Zhuhai last August.

As sales of smartphones entered a sluggish phase, the Taiwanese company was trying to reduce its reliance on its main customer, Apple, and produce chips for high-definition TV sets and for use in photography. Eventually, the Zhuhai plant would also manufacture elements for use in robots and self-driving vehicles, the Nikkei Asian Review reported.