Hon Hai reportedly in talks to build US$9 billion chip plant in China

In this May 27, 2010 file photo, a worker looks out through the logo at the entrance of the Foxconn complex in the southern Chinese city of Shenzhen. (AP Photo/Kin Cheung, File)

TAIPEI (CNA) — Taiwan-based manufacturing giant Hon Hai Precision Industry Co., known internationally as Foxconn, is in talks to build a US$9 billion chip plant in the southern Chinese city of Zhuhai, Japan’s Nikkei Asian Review reported on Dec. 21.

The iPhone assembler plans to start the construction as early as 2020, with most of the investment expected to be subsidized by the Zhuhai government, the Nikkei report said, citing people familiar with the matter.

Hon Hai is expected to form a joint venture for the project with its subsidiary — Japanese electronics maker Sharp — and the Zhuhai government, Nikkei cited an industry source as saying.

The plant will produce chipsets for ultra-high-definition 8K televisions and camera image sensors, and sensor chips for industrial uses and connected devices, hoping to eventually produce advanced chips for robotics and autonomous vehicles, according to the Nikkei report. The project comes as the United States and China remain locked in a trade spat and as Hon Hai seeks to reduce its dependence on Apple.

By Christie Chen and Chung Jung-feng