Foxconn Technology Group will invest at least 5 billion yuan ($814 million) into its factories in northern China’s Shanxi province amid the world’s largest contract electronics manufacturer’s push into electric vehicles.
Chairman Terry Gou expects the company’s Shanxi workforce to reach 100,000 this year with annual output surpassing 60 billion yuan, Taipei-based Foxconn said in a statement, citing a speech delivered by Gou in Shanxi’s Taiyuan city today. The company didn’t provide further details on the investment.
Foxconn joins companies from Tesla Motors Inc. (TSLA) to China United Network Communications Corp. that are tapping into China’s drive to boost production and usage of new-energy cars which includes electric, hybrid and fuel-cell vehicles. The government is considering providing as much as 100 billion yuan to build charging stations and has already set a target for government procurement of electric cars.
Gou has held talks with Tesla Chairman Elon Musk and Foxconn is already providing some components for the Palo Alto, California-based company’s vehicles, he said at a shareholders’ meeting in June.
“There’s some very promising potential collaboration with Foxconn,” Musk told shareholders on June 3. “We do feel that with potential alliances like Foxconn, we could potentially expand our production faster than would otherwise be the case.”
Tesla last month signed a deal with phone carrier China United Network to build 400 charging points in 120 Chinese cities.
Foxconn, founded by Guo in 1974, has been in Shanxi for a decade and has invested 20 billion yuan there to produce optical lenses, robots and precision tooling, it said in the statement. The Taiyuan campus is also host to one of its four iPhone-assembly plants, according to Apple Inc. (AAPL)’s supplier responsibility report.
Source: http://www.bloomberg.com/news/2014-09-03/foxconn-to-invest-5-billion-yuan-in-its-shanxi-factories.html#
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