Hon Hai Precision Industry Co. Ltd. may be designated to lead the establishment of a semiconductor plant worth 60 billion yuan or $8.7 billion in China's Zhuhai, Nikkei wrote on Friday after obtaining the information from people in the room. The Taiwan-based company, better known as Foxconn Technology Group, has signed a broad agreement in August with the local government about cooperation in the area. It is seen starting a joint venture with its subsidiary Sharp Corp. from Japan, which has earlier produced microchips, the report adds.
According to leaks from the negotiations, the city, situated between Macau and Hong Kong, would cover most of the costs via subsidies. Sources claimed the factory's construction should begin in 2020, but also warned the agreement isn't final and cited "political issues." Apple's supplier is apparently trying to balance relations with the governments of China and the United States, which are at loggerheads over trade, national security and protection of intellectual property.
