Foxconn Reportedly Wants to Build a $9 Billion Factory in a City That Doesn't Exist
Saudi Arabia is planning to build a new city called Neom, and Foxconn is talking to the Saudi government about building a $9 billion manufacturing facility there.
As The Wall Street Journal reports, people familiar with the matter claim the new facility would be a joint venture and multipurpose, meaning it could handle chip production alongside electronic displays and electric vehicle component lines.
The new factory will be located in the city of Neom in the Tabuk Province of northwestern Saudi Arabia. The one problem being, Neom doesn't exist yet. The Saudi government announced Neom back in 2017 and is planning to complete the first section by 2025. When finished, it's expected to become a new economic zone covering 10,000 square miles at an estimated cost of $500 billion.
The final location of Foxconn's facility is by no means set in stone, and the company is also thought to be talking to the United Arab Emirates (UAE) about the project. In return for building the facility, Foxconn is seeking financing, subsidies for power and water, and significant tax breaks.
Approval of any deal ultimately rests with Prince Mohammed, assuming Saudi Arabia ends up offering Foxconn a more attractive deal than the UAE. Foxconn would also need to be convinced Neom is actually going to be built in a timely manner and will offer reliable access to power and water before it commits to this new desert facility.
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