FOXCONN, Apple Inc.’s iPhone assembler, is in the final stages of talks with the local government of the city of Zhuhai to build a chip plant there with a total investment of about US$9 billion, the Nikkei business daily reported Friday. The total investment could add up to around 60 billion yuan (US$9 billion), most of which would be shouldered by the Zhuhai government through subsidies and tax breaks, the Nikkei said, quoting sources familiar with the matter. Foxconn is expected to form a joint venture for the project with Japanese electronics group Sharp, which it acquired in 2016, and the Zhuhai government, Nikkei said, quoting an industry source. Sharp is the only Foxconn subsidiary with experience of chip manufacturing, Nikkei said. However, the Japanese company stopped developing semiconductor technology when it ran into financial problems in 2010. Foxconn, formally known as Hon Hai Precision Industry Co., is planning to start the construction as early as 2020, the report said. Foxconn, the world’s largest contract manufacturer, has been interested in the chip business, but many in the industry doubt the company has the resources to enter the field.(SD-Agencies) |