BEIJING (Reuters) – Taiwan’s Foxconn, the world’s largest contract electronics maker and Apple’s biggest iPhone assembler, said on Wednesday it plans to invest 1 billion yuan ($137.5 million) to build a new business headquarters in Zhengzhou, China.
Foxconn, officially known as Hon Hai Precision Industry Co Ltd, signed a contract with the Henan provincial government for the proposed project, which will have a construction area of about 700 hectares (283 acres), the company said.
Foxconn is benefiting from strong demand for servers for artificial intelligence applications, with customers also including leading AI chipmaker Nvidia.
The Taiwanese company this month posted better-than-expected quarterly revenue on AI server demand, and forecast continued growth in the current quarter.
Foxconn announced plans for its new business headquarters in Henan province in April, which it said would focus primarily on new technologies and core technology research, though it did not disclose investment figures at the time.
The world’s largest iPhone production facility in Zhengzhou was hit by a COVID-19 outbreak in 2022, resulting in layoffs and riots as well as production disruptions.
($1 = 7.2748 Chinese yuan)
(Reporting by Bernard Orr and Shanghai newsroom; Writing by Anne Marie Roantree; Editing by Jacqueline Wong and Jamie Freed)
