Foxconn Technology Group has begun construction of a global headquarters for its New Business Development Group, as the Apple contract manufacturer expands into the production of electric vehicles (EVs), batteries, semiconductors and robots.

The facility in Zhengzhou, the capital of central Henan province where Foxconn runs the world's largest iPhone factory, on Thursday hosted a groundbreaking ceremony attended by chairman and CEO Liu Young-way and provincial governor Wang Kai, according to a statement on the government's website.

"Foxconn will integrate global technology reserves and industry chain resources, with a focus on EVs, energy storage and other emerging industries, injecting new growth power into the development of the regional economy and high-end manufacturing industry chain," the statement said.

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The move marks a major step by Foxconn, also known as Hon Hai Precision Industry, to diversify its business since it announced plans in 2019 to venture into EVs, semiconductors, robotics, artificial intelligence, 5G telecommunications and digital health.

The site of Foxconn's new business headquarters in Zhengzhou, Henan province. Photo: Coco Feng alt=The site of Foxconn's new business headquarters in Zhengzhou, Henan province. Photo: Coco Feng>

The site of the new headquarters was chosen in 2023 and spans 70,000 square metres (753,000 sq ft). Foxconn has allocated 1 billion yuan (US$137 million) to its development.

The company in July kicked off the construction of a "trial manufacturing centre" for EVs in the Zhengzhou Airport Economy Zone, where its biggest iPhone plant is based. The facility would cater to "well-known domestic and foreign car brands" with the goal of building the area into a "core production base" for Foxconn's new-energy vehicle segment, the company said at the time.

The provincial government said on Thursday it had "always attached great importance to and fully supported the development of Foxconn in Henan since the company's arrival in 2010".

The relationship between Foxconn and Henan authorities has not always been stable. The company's production activity in Zhengzhou suffered significant disruptions in 2022 due to a Covid-19 outbreak, which triggered mass walkouts and worker protests over strict pandemic controls and wage issues.

The debacle resulted in shipment delays for the iPhone during the holiday season in both the US and Europe. Consequently, the California-based company accelerated its efforts to shift some production outside China to countries including India and Vietnam.

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