Taiwan’s Foxconn, the world’s largest contract electronics maker and Apple’s biggest iPhone assembler, announced on Wednesday its plans to invest 1 billion yuan ($137.5 million) to construct a new business headquarters in Zhengzhou, China.
Foxconn, formally known as Hon Hai Precision Industry Co Ltd, signed a contract with the Henan provincial government for the proposed project. The new headquarters will cover an area of about 700 acres (283 hectares), according to the company’s statement.
Foxconn is seeing strong demand for servers used in artificial intelligence (AI) applications. This includes customers like AI chip company Nvidia. The company recently reported better-than-expected quarterly revenue due to this demand and expects continued growth in the current quarter.
In April, Foxconn announced its plans for the new headquarters in Henan province. The facility will focus mainly on new technologies and core technology research. At that time, Foxconn did not reveal the investment amount.
The world’s largest iPhone manufacturing facility, located in Zhengzhou, experienced significant disruptions in 2022 due to a COVID-19 outbreak. This led to worker departures, unrest, and production interruptions.
| Project Details | Information |
|---|---|
| Location | Zhengzhou, China |
| Investment Amount | 1 billion yuan ($137.5 million) |
| Construction Area | 700 acres (283 hectares) |
| Focus | New technologies, core research |
| Major Customers | Apple, Nvidia |
| Recent Revenue Performance | Better-than-expected quarterly |
| Expected Growth | Continued growth forecast |
Featured Image courtesy of The Star
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