Foxconn Reported to Build Third Fab with Hewlett Packard

Foxconn to Construct Notebook Factory in China – Report

by Anton Shilov
08/05/2009 | 12:36 PM

Foxconn Electronics, a leading contract maker of various electronics components and equipment, reportedly plans to build a yet another factory to make notebooks with Hewlett Packard. If the information is correct, this will be the third jointly constructed manufacturing facility by Foxconn and HP in about two years.

 

Foxconn and HP recently signed a contract to collaboratively build a fab Chongqing, China, with annual capacity of 20 million notebooks a year in 2012, claims a report in a Chinese-language IT.com.cn web-site (which was partly translated by DigiTimes web-site. It is unknown how much does the contract manufacturer and PC vendor plan to invest into the project.

In late February’ 09 the two companies reportedly agreed to build a PC assembly plant in Turkey to tap the European and Middle East markets. There are no exact details regarding the Foxconn-HP plant in Turkey, but according to media reports, Foxconn Electronics planned to invest $60 million into the plant, which may indicate that the plant will have very large manufacturing capacities.

Back in mid-2007 the two companies also agreed to jointly construct computer assembly factory in Saint Petersburg, Russia, industrial areas and have even acquired the land since then. The fab can be as large as 60 000 square meters and may employ up to 5 thousand of workers, according to some reports. Manufacturing capacity of the Foxconn-HP plant was expected to be 40 thousand of systems initially.

The collaboration between Foxconn Electronics and Hewlett Packard will definitely impact positions of the latter on the local PC markets and will allow to leave behind its rivals Acer Group and Dell, which are pretty aggressive these days. Considering the fact that manufacturing capacities of the plant in Chongqing, China are pretty large, it is likely that systems produced by the new plant in China will be available worldwide.