Foxconn Technology Group, Apple Inc.’s main iPhone assembly partner, is seeing progress in its talks to build a display factory in China’s northern city of Zhengzhou, the Wall Street Journal reported, citing a local industry official.
“The discussions are ongoing,” Xue Jingxia, chairwoman of Zhengzhou’s Industry and Commerce Association, was quoted as saying. “It is being finalized.” She was speaking on the sidelines of the National People’s Congress, where she is a delegate.
The newspaper reported in October that preliminary talks had begun for the plant, in which Foxconn is likely to invest as much as 35 billion yuan (US$5.59 billion).
Displays are harder to make than other smartphone parts and fetch higher profit margin.
Foxconn, the world’s largest electronics contract manufacturer, has sought to expand into higher-margin sectors in recent years, including high-end components and retailing, the report said.
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