In Short:
Taiwan’s Foxconn, a top iPhone assembler, is investing $137.5 million to build a new business headquarters in Zhengzhou, China. The company is seeing strong demand for AI servers and posted better-than-expected quarterly revenue. The new headquarters will focus on new technologies and core research. In 2022, Foxconn’s iPhone manufacturing facility in Zhengzhou faced a COVID-19 outbreak causing disruptions in production.
Foxconn to Invest $137.5 Million in New Business Headquarters in China
Taiwan’s Foxconn, the world’s largest contract electronics maker and Apple’s biggest iPhone assembler, has announced its plan to invest 1 billion yuan ($137.5 million) in constructing a new business headquarters in Zhengzhou, China.
Investment Details
The company has signed a contract with the Henan provincial government for the proposed project, which will cover an area of about 700 acres (283 hectares).
Foxconn is experiencing strong demand for servers for artificial intelligence applications, with customers like AI chip maker Nvidia. The company recently reported better-than-expected quarterly revenue due to this demand and expects continued growth in the upcoming quarter.
Expansion Plans
In April, Foxconn announced its intentions to establish a new business headquarters in Henan province, focusing on new technologies and core technology research. However, the investment amount was not disclosed at that time.
COVID-19 Impact
In 2022, Foxconn’s iPhone manufacturing facility in Zhengzhou faced challenges due to a COVID-19 outbreak, leading to worker departures, unrest, and production disruptions.
