INTERNATIONAL - Taiwan’s Foxconn, Apple Inc’s iPhone assembler, is in the final stages of talks with the local government of the Chinese city of Zhuhai to build a chip plant there with a total investment of about $9 billion, the Nikkei business daily reported on Friday.
The total investment could add up to around 60 billion yuan, or $9 billion, most of which would be shouldered by the Zhuhai government through subsidies and tax breaks, the Nikkei said, citing people familiar with the matter.
Zhuhai is a city in the southern Chinese province of Guangdong near to Macau.
The plans to build the cutting-edge plant comes amid the trade dispute between the US and China, which includes concerns about China expanding the production of microchips.
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, citing an industry source.