Ding Qi'an, spokesperson from Taiwan Hon Hai Precision, the parent company of Foxconn, says Foxconn will invest more than US$1 billion to build two industrial parks in China's northeastern Liaoning Province.

This is the first time that Foxconn made such a large investment in this part of China.

The two parks will be located in Shenyang and Yingkou, respectively. The park in Shenyang will be mainly engaged in making precision and digital control machine tools and car parts, while the one at Yingkou will be involved in manufacturing electronics including printing circuit panels.

Foxconn gis heading to this part of China mainly because of the cheaper land and sufficient labor resources. This will help them balance the high costs they incur in such coastal areas as Guangdong and Shanghai, where they also have major operations.