WSJ: Foxconn talks to Saudi Arabia about the chip factory

Foxconn talks with Saudi Arabia about a factory that, among other things, could produce computer chips and screens, according to insider The Wall Street Journal. The Taiwanese company that assembles iPhones for Apple also wants to invest $ 9 billion in game consoles for Nintendo and Sony. About 8.2 billion euros were exchanged.

Foxconn seeks funding in return for investment in a factory to be located in the newly built city of Nyom. The company also wants to get tax breaks and subsidies for using electricity and water. Saudi Arabia requires Foxconn to use two-thirds of its products from factories, so there is a guaranteed buyer.

An agreement would benefit both Foxconn and Saudi Arabia. Due to tensions between that country and the United States in recent years, Foxconn wants to be more productive in China. Also, it wants to do more than just assemble electronics and has set its sights on making electric cars. Saudi Arabia is trying to set up a technology sector to reduce its dependence on oil.

Incidentally, there are other ways if Foxconn does not come to an agreement. The company, officially known as Hon Hai Precision Engineering, is in talks with the United Arab Emirates about a potential factory in the country.