Apple supplier Foxconn in talks to build $9 billion factory in Saudi Arabia

Foxconn, the biggest assembler of Apple iPhones, is in talks with Saudi Arabia about jointly building a $9 billion multipurpose facility that could make microchips, electric-vehicle components, and other electronics like displays, The Wall Street Journal reports citing “people familiar with the matter.”

Foxconn to resume iPhone assembly: Foxconn logo

Stephen Kalin and Summer Said for The Wall Street Journal:

The Saudi government is reviewing an offer from the company, formally known as Hon Hai Precision Industry Co. , to build a dual-line foundry for surface-mount technology and wafer fabrication in Neom, a tech-focused city-state the kingdom is developing in the desert, the people said. Discussions over the project started last year, they said.

The Saudis are conducting due diligence and benchmarking the offer against others that Foxconn has made for similar projects globally, one of the people said.

Besides Saudi Arabia, Foxconn is also talking with the United Arab Emirates about potentially siting the project there, one of the people said.

The Taiwan-based company has looked to diversify its manufacturing sites amid rising tensions between China and the U.S. that put it in a potentially vulnerable spot… Foxconn is seeking large incentives including financing, tax holidays and subsidies for power and water in exchange for helping set up a high-tech manufacturing sector in the kingdom, the people said, as Saudi Arabia seeks to diversify its economy away from oil.

MacDailyNews Take: The more diversification, the better.

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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]


    1. Apple wants to invest in Saudi Arabia and not the USA Trump touted and Biden lately jumped on board.

      Consider this Tim Cook:

      Then again, the latest example Cook and the Apple Board only concerns are the almighty dollar and will NEVER ALLOW human rights abuses to get in their way…


        Your hero treated Saudi Arabia like every US president since the OPEC embargo, Goeb. Petrol dependency will do that to you.

        Foxconn already screwed over Wisconsin, it may be that they’re going to do the same to murderous Prince Salman. Too soon to tell.

        It’s unclear what leverage, if any, Apple has on this specific matter. It may be that nothing in the proposed facility will be purchased by Apple. But I would support that Apple do a better job diversifying its manufacturing providers in democratic nations. That said, it’s lame that people here imply Apple is evil for doing business around the world in accordance with local laws. If you applied the same standard to every company, I am certain you’d have a lot less stuff in your household. You bought it, you’re complicit.

        Perhaps the only thing that would change a US CEO’s mind about outsourcing would be increased tariffs on goods and services produced in nondemocratic countries. Of course, such a bold diplomatic policy would mean it will cost more to fuel up your pickup. One end of the political spectrum complains already about having to pay more to avoid supporting an even more murderous authoritarian regime. Consistency anyone? If you want to have high moral standards, then you can’t be a cheapskate, and you can’t come here to support politicians who have done exactly the same things you claim are bad.

        1. This is not about Trump. All presidents court Saudi Arabia, we are talking Apple business in nations with human rights abuses, got it?

          “it’s lame that people here imply Apple is evil for doing business around the world in accordance with local laws.”

          No, it’s lame Apple APOLOGISTS use the cover line “in accordance with local laws.” What a tidy way to EXCUSE and DODGE CRITICISM doing business in nations that execute, mutilate, jail, discriminate and much more abuse of ordinary citizens.

          Cook speaks out in SJW form on many issues in the USA, pious in his preachings for human rights, and turns a blind, or is it bling, eye to abuses all in on fat cat corporate profits.

          Repeat after me, Tim Cook is the gold standard example of a FALSE SJW and the biggest HYPOCRITE CEO on planet Earth…

      2. Which company can invest in the US? The US is not exactly business friendly; it could be a money pit for some companies.

        Why make a iPhone in the US for USD999 when they can make it elsewhere for 299? Perhaps they could pass the extra cost along to those willing to pay the premium difference. Ain’t gonna be me.

        What?! Apple isn’t a charity? They want to earn the “almighty” dollar? Gee, kind a hard to “invest” anywhere without some coin on hand. So, yeah, it is the almighty dollar. Shocked? Been this way since apes were trading sticks and seashells in a cave somewhere.

  1. FOXCONN is of course welcome to build wherever they are welcomed. I wonder however, why we are effectively financing their diversification to other areas of the world and not the United States? We pour money into FOXCONN, now they are looking to pour it into Saudi Arabia, where there is no shortage of America haters. It’s the home of the minds who brought us 911.

    We know that Apple and the rest of the electronics industry will happily go where they can save a nickel. It’s bizarre that the United States doesn’t make computers. FOXCONN jumped at the opportunity to ditch building plants in the U.S. as soon as Trump was gone. God I miss mean tweets.

    I think we’re seeing the outcome of creating the new world order by feeding America’s enemies capital.

    I keep hearing how China and Russia are tired of the “American hegemony.” What hegemony? All we do is buy stuff from them. Even Japan is building its own war machines superior to our own.

    It just seems like we should be looking to rebuild our self sufficiency. Making the rest of the world rich and educated while our education system is polluted with crap like critical race theory just doesn’t seem rational or prudent. I don’t care if you call it Make America Great Again or Build Back Better or whatever. We should be looking out for ourselves. Spending trillions on pork laden “infrastructure bills,” and hobbling our energy self sufficiency is just plain stupid.

    The world has become a more dangerous place, more dangerous than the days of the Cuban Missile Crisis over the last few weeks. Those of you with children and grandchildren shouldn’t be happy about the state of things.

    1. China whores like Tim will never be America First. They want their own shares on Wall Street to increase in value. That’s the most they truly care about our country.

      I watched the event last week shortly after they streamed their canned presentation. It was nice to skip over Tim’s cringy intro, outro, and filler between each product. If he weren’t Apple CEO, would anyone actually care what that guy says?

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