BEIJING (Reuters) – Taiwan’s Foxconn, the world’s largest contract electronics manufacturer and the top assembler of Apple Inc’s iPhones, 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., announced that it had signed a contract with the Henan provincial government for the project, which will cover a construction area of about 700 acres (283 hectares).
Foxconn is benefiting from robust demand for servers for artificial intelligence applications, and its customers include AI chip darling Nvidia.
The Taiwanese company this month reported better-than-expected quarterly revenue due to demand for AI servers and predicted continued growth in the current quarter.
Foxconn announced plans to build a new headquarters in Henan in April and said the site would focus on research into new and core technologies, though it did not disclose how much it would invest at the time.
The world’s largest iPhone manufacturing plant in Zhengzhou was hit hard by the COVID-19 outbreak in 2022, leading to staff turnover, unrest and production disruptions.
(1 dollar = 7.2748 Chinese yuan)
(Reporting by Bernard Orr and Shanghai Newsroom; Writing by Anne-Marie Roantree; Editing by Jacqueline Wong and Jamie Freed)
