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Foxconn to build new Huawei smartphone factory in western China

Foxconn will be producing Huawei smartphones in Guizhou.

TAIPEI -- Taiwan's Foxconn Technology Group, the world's largest contract electronics manufacturer, is building a new factory for Huawei Technologies in southwestern Chinese province of Guizhou. While the Taiwanese assembler, known locally as Hon Hai Precision Industry, seeks to take advantage of lower labor costs in one of the poorest regions of the country, the Chinese telecom hardware company intends to cement its top position in the domestic smartphone market this year by boosting low cost handset supplies.

Three sources told the Nikkei Asian Review that Hon Hai is building a new assembly facility to accommodate Huawei's expanding business.

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