Foxconn signed an agreement with the municipal government of Nanjing, Jiangsu Province, planning to invest over CNY37.5 billion to build a new smartphone plant in the city.

Under this basic agreement, Foxconn's new plant will not only produce smartphones, but also will include a LCD TV factory and R&D center, facility for semiconductor manufacturing equipment, and logistics center. The municipal government of Nanjing will probably provide capital and land support in infrastructure construction, but totals have not yet been made public.

Foxconn confirmed this investment plan, but did not reveal any details. The company already has a smartphone factory in Nanjing, but it is small. The construction of this new plant indicates the company's intention to expand its production system and gain more orders from the growing Chinese smartphone brands.

Foxconn decided in February to build a new panel factory with a scale of JPY1 trillion in Guangzhou. In addition, the company also plans to build a LCD panel factory in Wisconsin, U.S., with an investment of USD10 billion.