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Foxconn Technology Group, the biggest assembler of iPhones for Apple Inc., is negotiating with Saudi Arabia to jointly build a $9 billion multipurpose factory, Wall Street Journal reported, citing sources.
They added that the facility will make microchips, electric-vehicle components and other electronics.
The Saudi government is reviewing Foxconn’s offer, to build a dual-line foundry for surface-mount technology and wafer fabrication in Neom.
Negotiations over the project started in 2021, the sources said.
The Kingdom is conducting due diligence and comparing the offer against others that Foxconn submitted for similar projects globally, according to the report.
The Saudi government wants Foxconn to guarantee that it would direct at least two-thirds of the foundry's production into Foxconn's existing supply chain. This aims to ensure the availability of buyers for its products and that the project is profitable, while the electronics assembler seeks to get major incentives.
Saudi Arabia might offer direct joint equity investment, industrial development loans, low-interest debt via local banks, as well as export credit to compete with other places the company might consider, the sources said.
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