Taiwan-based Foxconn plans to invest US$1.2 billion to build a new mobile phone factory in mainland China in order to further expand its business.
Foxconn's new mobile phone factory will be located in Langfang, Hebei Province, which is known as a Silicon Valley of China.
At present, Foxconn is working as a mobile phone OEM for Nokia and Motorola. A representative from the company says that Foxconn's existing factories in Shenzhen and Beijing can not meet the company's growing needs in the coming years, and this is the main reason that they have decided to set up the new factory.
Currently Foxconn accounts for about 48.5% of the mobile phone OEM market in the world. It is estimated that the company's revenue in 2007 will increase by 50% compared with that of this year.
Earlier this year, Foxconn became the target of international condemnation when articles and rumored flowed that its was mistreating its workers at a factory that provides services to Apple Computer (APPL) in China.