[Wen/Observer Network Zhang Chenjing]

Earlier, news of Foxconn's entry into the chip industry kept coming out. On December 21, Japan Economic News released an exclusive report, citing a person familiar with the matter, saying that Foxconn Technology was preparing to launch a $9 billion (about 62 billion yuan) chip manufacturing project in Zhuhai, China. The negotiations are now in the final stages.

Screenshots of Japanese Economic News

Foxconn Technology Group is a high-tech enterprise headquartered in Taiwan, China, Hon Hai Precision Group.

Reported that the United States regards China's attempt to dominate cutting-edge technology as a "provocation", but China still does not give up building a self-sufficient advanced chip industry and providing power for these technologies.

Foxconn will promote the chip project in Zhuhai, a southern Chinese city, with a total investment of $9 billion, according to a person familiar with the matter. Most of them will be borne by the Zhuhai government through subsidies and tax relief, which will be listed as one of China's top high-tech projects.

This is Foxconn's latest large-scale project after investing $10 billion to build a LCD panel factory in Wisconsin, USA. Sources said Foxconn's new chip factory will start construction in 2020, and the project is expected to make Foxconn a challenger for industry leaders such as semiconductor manufacturers.

The new plant will produce chipsets for ultra-high definition 8K TV and camera image sensors, as well as for various industrial sensor chips and related equipment. The ultimate goal is to expand the 12 inch chip factory in Zhuhai to create more advanced chips for robots and autopilot cars.

Foxconn has always been Apple's largest maker of the iPhone, accounting for half of Foxconn's annual revenue of 152.65 billion dollars, the report said. At a time of weak demand for the iPhone, Foxconn hopes to use the new project to reduce its dependence on Apple.

Industry sources revealed that the $9 billion plan will be implemented in segments. However, it was also said that the project was likely to be changed or postponed for "political reasons".

Besides making chips for itself, Foxconn will also accept orders from other customers and compete directly with top companies in the chip manufacturing industry, he said.