Foxconn plans semiconductor operations in China’s Greater Bay Area

Foxconn Technology Group, the world’s largest electronics contract manufacturer, plans to establish semiconductor-related operations in Zhuhai under a pact it signed on Thursday with the southern Chinese coastal city’s government.

The Taipei-based company, known formally as Hon Hai Precision Industry, will develop semiconductor design services, and semiconductor equipment and chip design in the city, according to the Zhuhai government’s website. This strategic cooperation was first reported by The Wall Street Journal on Friday.

Terry Gou Tai-ming, the billionaire chairman and chief executive of Foxconn, said in a statement on the Zhuhai website that the development of the Greater Bay Area – a Chinese government initiative to integrate the economies of Hong Kong, Macau and nine cities in Guangdong province – “has brought a rare opportunity for Zhuhai”, which aims to develop a semiconductor services industry.

A new Foxconn base that will house those new semiconductor-related enterprises is expected to be built in the city, according to a person familiar with the matter.

The agreement between Foxconn and Zhuhai also includes the development of projects related to the so-called industrial internet, 5G, 8K ultra high-definition technology and artificial intelligence.