Taiwan technology giant Foxconn group has signed a letter of intent to invest up to US$1 billion in Indonesia as the world's largest contract electronics maker seeks to diversify production away from the mainland, company officials said yesterday.
Foxconn's Taipei-headquartered mother company, Hon Hai Precision Industry, said the investments would be in Jakarta province, which had better infrastructure than other regions of the country.
"We plan to come up with detailed investment plans for the Indonesian and Jakarta authorities in three months," a Hon Hai official said.
The investments would be completed in three to five years in areas ranging from research and development, electronics software design and internet business to manufacturing and assembly of electronic products, she said.
The move is part of the conglomerate's efforts to diversify investments from the mainland, where it has set up huge manufacturing facilities to make products for Apple as well as Sony and Nokia.
The group employs about one million workers on the mainland, roughly half of them based at its main facility in Shenzhen.
But officials from the group said the mainland was gradually losing its attraction as a global factory featuring cheap labour and land.
Late last year, Foxconn also announced that it was planning to spend US$40 million on manufacturing and research facilities in the United States.
The group has production facilities in more than 10 countries, including Vietnam, Brazil and Mexico.