Foxconn plans to build a $9B factory in Saudi Arabia

Posted:
in General Discussion edited March 2022
Apple assembly partner Foxconn is planning to build a new $9 billion facility in Saudi Arabia, a report claims, a factory that could be used to expand its business into auto production, possibly even the Apple Car.




As a major contract manufacturer, Foxconn uses many of its factories to build Apple products such as iPhones. In a Monday report, it seems that the company plans to build yet another factory, this time in Saudi Arabia.

Hon Hai Precision Industry Co. has made an offer to the Saudi government for a dual-line foundry, used for "surface-mount technology and water fabrication", sources of the Wall Street Journal say. The facility, valued at $9 billion, will apparently be able to produce items such as microchips, components for electric vehicles, and display electronics.

The offer is apparently under review, with both sides seeking assurances about the project's end result. The Saudi government is thought to want Foxconn to guarantee that at least two-thirds of output is put into Foxconn's existing supply chain, ensuring that the enterprise will be profitable.

Meanwhile, Foxconn apparently wants incentives like financing, tax holidays, and power and water subsidies. This would be in exchange for setting up a major factory in Neom, an under-development tech-based city-state, as Saudi Arabia tries to diversify away from oil.

Foxconn may not necessarily build its facility in Saudi Arabia. It is reportedly also in talks with the United Arab Emirates about a similar project.

A demand for factory products to be incorporated into existing supply chains does still leave Foxconn with enough room to use the facility for other product types separate from the existing supply chain. This could theoretically include vehicles, a segment Foxconn is keen to join.

Such a facility could also help Foxconn diversify its own production, enabling it to insulate its business against global events such as trade disputes, war, and pandemics like COVID-19.

Read on AppleInsider

Comments

  • Reply 1 of 14
    bloggerblogbloggerblog Posts: 2,475member
    Their king just performed mass executions, he's a raging maniac! I wouldn't step foot in that country as long as he's king.
    iqatedoAlex_V
  • Reply 2 of 14
    22july201322july2013 Posts: 3,612member
    Their king just performed mass executions, he's a raging maniac! I wouldn't step foot in that country as long as he's king.
    I wouldn't even fly in an airplane that passes through or near their airspace. I would pay more for a flight that avoids the area.
    viclauyycAlex_V
  • Reply 3 of 14
    sflocalsflocal Posts: 6,103member
    What compels companies to open shop is such a backward-ass country like Saudi Arabia, especially considering the blatant human-rights abuses that goes on there?
    iqatedoAlex_V
  • Reply 4 of 14
    Whatever happened with Trump’s Foxconn Wisconsin?
    daven
  • Reply 5 of 14
    22july201322july2013 Posts: 3,612member
    sflocal said:
    What compels companies to open shop is such a backward-ass country like Saudi Arabia, especially considering the blatant human-rights abuses that goes on there?
    Do you mean like Apple?

    https://appleinsider.com/articles/22/02/05/all-female-apple-developer-academy-in-saudi-arabia-opens-to-students

  • Reply 6 of 14
    viclauyycviclauyyc Posts: 849member
    Isn’t Saudi one of the most expensive places to live and run business? Also, isn’t most Saudi local is very rich? So if the factory built, they need to hire foreign workers to do the job? So why not go to where the labour is cheap?

    Why Foxconn always build factories in countries have human rights problems, China, Vietnam, United…
  • Reply 7 of 14
    bloggerblogbloggerblog Posts: 2,475member
    sflocal said:
    What compels companies to open shop is such a backward-ass country like Saudi Arabia, especially considering the blatant human-rights abuses that goes on there?
    That's an unfair statement. I've travelled there a couple of times, it's a really nice place and I met some exceptional people, openminded friendly and always excited to talk to Americans. Much of the western media, as many of us know, is skewed.

  • Reply 8 of 14
    appneckappneck Posts: 14member
    In Wisconsin they are known as Foxconned. They didn’t deliver on any of the promises that they made regarding jobs or manufacturing… maybe they deserve each other.   
    daven
  • Reply 9 of 14
    sflocalsflocal Posts: 6,103member
    sflocal said:
    What compels companies to open shop is such a backward-ass country like Saudi Arabia, especially considering the blatant human-rights abuses that goes on there?
    That's an unfair statement. I've travelled there a couple of times, it's a really nice place and I met some exceptional people, openminded friendly and always excited to talk to Americans. Much of the western media, as many of us know, is skewed.

    Yeah okay.  The Russian people are some of the nicest as well, except for uhm... you know... government?
    viclauyycAlex_V
  • Reply 10 of 14
    sflocal said:
    What compels companies to open shop is such a backward-ass country like Saudi Arabia, especially considering the blatant human-rights abuses that goes on there?
    Subsidies. They will import their workers, just like so many of the workers in other industries in SA.
  • Reply 11 of 14
    sflocal said:
    What compels companies to open shop is such a backward-ass country like Saudi Arabia, especially considering the blatant human-rights abuses that goes on there?
    That's an unfair statement. I've travelled there a couple of times, it's a really nice place and I met some exceptional people, openminded friendly and always excited to talk to Americans. Much of the western media, as many of us know, is skewed.

    It has nothing to do with the individual personalities of the population. I’m sure individually they are as nice as people anywhere else. However collectively they allow a leader who ordered the brutal dismemberment of a member of the free press to continue to lead.
  • Reply 12 of 14
    danoxdanox Posts: 3,043member
    ???????????
  • Reply 13 of 14
    22july201322july2013 Posts: 3,612member
    danox said:
    ???????????
    !!!!!!!!!!!
  • Reply 14 of 14
    bloggerblogbloggerblog Posts: 2,475member
    sflocal said:
    What compels companies to open shop is such a backward-ass country like Saudi Arabia, especially considering the blatant human-rights abuses that goes on there?
    That's an unfair statement. I've travelled there a couple of times, it's a really nice place and I met some exceptional people, openminded friendly and always excited to talk to Americans. Much of the western media, as many of us know, is skewed.

    It has nothing to do with the individual personalities of the population. I’m sure individually they are as nice as people anywhere else. However collectively they allow a leader who ordered the brutal dismemberment of a member of the free press to continue to lead.
    They don’t “allow” hence the executions of the opposition. The oppressive gov is being  funded and supported by us since the days of Lawrence of Arabia, we performed several coups to make sure that they stay in power. Syriana is also a more recent movie about the US assassination of their prince.
    Alex_V
Sign In or Register to comment.