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“Foxconn” in Saudi Arabia.. The birth of the Arab city of the “iPhone”

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Foxconn Technology Group, one of the largest suppliers to US electronics giant Apple, is in talks with Saudi Arabia.

Production of electronic chips

It is about setting up a factory in it at a cost of 9,000 million dollars. The US newspaper, “The Wall Street Journal”, reported that Foxconn is in talks to participate in the establishment of a multipurpose plant that can produce electronic chips, electric vehicle components and other electronic products.

The report adds that the Saudi government is studying the offer submitted by the Taiwanese company to set up the factory in the Neom area, which the Kingdom is currently developing.

High-tech manufacturing in the UK

In turn, the Taiwan-based company is looking to diversify its manufacturing sites amid rising tensions between China and the United States that expose it to risks.

Riyadh wants to make sure Foxconn directs at least two-thirds of the plant’s output into its existing supply chain, one person said, to ensure its products have buyers and the project is ultimately profitable.

Foxconn is seeking significant incentives, including financing, tax breaks and power and water subsidies, in exchange for helping create a high-tech manufacturing sector in the kingdom as Saudi Arabia aims to diversify its economy away from oil.

Saudi Arabia can offer direct equity investment, industrial development loans, low-interest debt from local banks and export credits to compete with other places Foxconn might consider.

Bloomberg had reported that the Saudi Public Investment Fund, which manages around $450 billion in assets, will set up a new entity called Velocity as the largest shareholder in the partnership.

On the other hand, Foxconn will provide software, electronics and electrical engineering for the new electric vehicles and will retain a minority stake in the company. This move will help the Kingdom; Gain experience in the automotive industry.

Foxconn has sought to diversify its business beyond Apple products in recent years, including by expanding its activities into electric vehicles. It has joined automakers like Stellants, Jeep, and Chrysler.

The company announced last year that it plans to build an electric vehicle project in the Middle East, with a focus on software and cloud infrastructure for passenger cars.

Foxconn, the city of the iPhone in China

Notably, Foxconn assembles most iPhone phones at another factory in the central Chinese city of Zhengzhou, earning it the nickname iPhone City.

The company was also among the first to face disruption from the coronavirus outbreak two years ago when it asked employees to move out of its Shenzhen headquarters as a precaution.

Apple supplier Foxconn halted operations at its Shenzhen province sites, which produce one of the iPhones, after the government imposed a closure of the tech hub, according to a company statement published by Bloomberg on Monday. March 2022.

The Taiwanese company is based in China, in the province of Shenzhen, as well as a major manufacturing plant in Guanlan.

The company suspended operations at the two sites and redeployed production to other sites to reduce the impact of the outage. But he did not specify the length of the suspension period.

This comes as measures taken by the Chinese government have called for non-essential businesses in Shenzhen to halt until March 20.

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