Foxconn International Holdings Ltd (富士康控股), the world's biggest contract manufacturer of mobile phones, plans to invest at least US$500 million in the next few years on a new factory in southern China to expand production.
Building the site in Huizhou in Guangdong Province is part of Shenzhen-based Foxconn's projected capital spending of US$1 billion this year and next year, spokesman Vincent Tong said by telephone yesterday.
Foxconn, a unit of Hon Hai Precision Industry Co (鴻海精密), plans to double capacity by the end of next year to meet rising orders from customers including Nokia Oyj and Sony Ericsson Communications Ltd. The Huizhou site may eventually become larger than the company's premises in Shenzhen, its biggest site, Tong said.
"Our operations in Shenzhen may reduce in size" as Foxconn gives up space to parent company Hon Hai, manufacturer of consumer electronics for clients including Apple Inc, Tong said.
Foxconn also plans to build an industrial, urban and entertainment complex in northern Vietnam worth US$1 billion, state media said yesterday.
The group -- which manufactures Nokia phones, iPods and Sony PlayStations -- has signed a memorandum of understanding with the people's committee of the northern port of Haiphong, the state-run Vietnam news agency said.
The project will cover an area of 1,000 hectares, it said.
In late August, the group announced investment plans of up to US$5 billion in Vietnam, a fast-growing economy.
The company has opened an US$80 million plant that will make camera modules, main boards and connectors in northern Bac Ninh Province.
It also plans to build several industrial-urban complexes in neighboring Bac Giang Province, north of the capital Hanoi.