Terry Gou, chairman of Hon Hai Group, announced that the company will invest over CNY5 billion in Shanxi to develop the electric car industry.

Gou revealed that in 2014, Foxconn's output in Shanxi will surpass CNY60 billion and the company already has 100,000 employees in this province. The company is expected to invest over CNY5 billion in Shanxi to develop the electric car industry by using the province's rich energy resources.

Hon Hai has been deploying resources towards the electric car sector for many years and has achieved decent results in batteries. The group has been supplying auto parts for the American electric car maker Tesla.

Gou previously said at a shareholders' meeting that the electric car is a popular subject and Hon Hai's products will feature prices below USD15,000. The investment in Shanxi is considered a key move to realize the low-price electric car strategy.

Reportedly a son of Shanxi, Gou has invested in the province for over ten years and Foxconn has two factories in Taiyuan and Jincheng, respectively. The one in Taiyuan mainly produces high-end smartphones and accessories; while the one in Jincheng manufactures industrial robots, automation devices, precision tools and dies, and optical lens.