Foxconn To Build New Huawei Smartphone Factory

Foxconn Technology Group, the world's largest computer manufacturer and supplier to Apple Inc., is reportedly building a new factory for Huawei Technologies in southwest China's Guizhou Province (FXI, quote).

FoxconnFoxconn has been bolstering its operations in Guizhou over the past few years as a result of cheaper operating costs in the region. It has also been building and expanding its low heat emission data centers in the province since 2014.

Industry experts believe Huawei will become an important client for Foxconn in the year ahead, with Apple (AAPL, quote) growth slowing down, and Huawei enjoying robust growth.

Huawei is a major Chinese client for Foxconn's subsidiary FIH Mobile, which also manufactures phones for its competitors Xiaomi and Oppo.

Earlier this month, FIH Mobile bought Microsoft's (MSFT, quote) feature phone division in a deal worth 350 million US dollars.

Microsoft in turn had acquired the division when it bought ought Nokia's mobile division in 2013 for 7.2 billion dollars.

Experts say Foxconn is looking to shift its business from reliance on contract electronics manufacture to developing its own high-tech products and marketing them to a wider audience.

Content Curiosity of China.org.cn