Foxconn, the world’s largest contract electronics manufacturer and Apple’s biggest iPhone assembler, has announced plans to invest 1 billion yuan ($137.5 million) to construct a new business headquarters in Zhengzhou, China.
The Taiwan-based Foxconn (Hon Hai Technology Group) has signed a contract with the Henan provincial government for the project, which will cover an area of approximately 700 acres (283 hectares), Reuters news report said.
The headquarters will focus primarily on new technologies and core technology research. Foxconn’s expansion in Zhengzhou aligns with the rising demand for servers supporting artificial intelligence applications. Notably, Foxconn’s clientele includes AI chip maker Nvidia, highlighting the company’s strategic positioning in the AI industry.
This development comes after Foxconn’s largest iPhone manufacturing facility in Zhengzhou faced significant challenges in 2022 due to a COVID-19 outbreak. The outbreak led to worker departures, unrest, and production disruptions, emphasizing the need for robust operational infrastructure in the region.