Foxconn to spend US$5.7 billion in Nanjing on world’s biggest smartphone assembly hub

Hon Hai Precision Industry Co., the world’s largest contract manufacturer for consumer electronics, said it will invest 37.5 billion yuan (US$5.74 billion) to expand its facilities in Nanjing city, turning it into the largest smartphone assembly on the planet and a hub for research and development.

The Taiwan company, which also operates under its trade name Foxconn Technology, said its deputy general manager Zheng Naijian signed a contract on September 12 with Nanjing’s deputy mayor Liu Yi’an in the city, whereby Hon Hai will invest to produce liquid crystal displays (LCDs) for smart televisions, research and development, as well as logistics, according to a company spokesman.

“The deal with Nanjing eases some concerns that Foxconn will reduce its investment in China after its billion-dollar investment in the United States,” said Li Yi, a researcher at the Shanghai Academy of Social Sciences internet Research Centre. “The company is trying to balance its footprint between the world’s two largest countries.”

Foxconn announced in July a plan to build a US$10 billion factory in the US state of Wisconsin to produce LCD monitors.

A US factory could create between 30,000 and up to 50,000 jobs, which would help Trump’s White House score political points with his support base, presenting them with evidence that his administration is delivering on its promise to create jobs at home, and to bring global assembly work back to America.