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Taiwan-Saudi talks to build $9 billion electronic chips plant in NEOM

It's a derelict empty piece of desert. Even after decades it is still a wasteland with no development whatsoever. Except maybe some cushy government jobs for Saudi citizens and an opportunity to boss around laborers from "miskeen" poor South Asian countries. Even on harmain railway it is an empty desolate train station.

A good looking one. But still empty, derelict, remote and desolate.
For a long time, a lot of their money was invested overseas. They now have a leader that has a vision to industrialize within their own country. At the very least they are trying.

At the very least it’s a market for the south Asian countries to send labor and products.
 
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These are not baseless. They fully covered in a detailed Air Force Monthly article from about 7-8 years ago. And what is your logic: they could not do it for a second tier jet (Typhoon), but they will be able to do it for a newer jet?

That then goes to the logic: wtf did Saudi Arabia buy a second rate jet (Typhoon)? Were the kickbacks just that good for the royal family?
KSA bought the Typhoon instead of the F-16, because it has a double engine.. it is far from being a second rate fighter.. it complements the F-15 perfectly for Saudi Arabia..

Does SA have enough pool of skilled manpower to support massive fab industry..?
Well..yes ..since the first objective is self sufficiency.. and that is already massive somehow.. KSA is preparing more skilled workers day and night on top of skilled workers coming from all over the world....because it wants to export too..
 
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Saudi Arabia’s EV Battery Bets Are a Warning​

Analysis by Anjani Trivedi | Bloomberg
August 22, 2022 at 7:29 p.m. EDT

The world’s oil capital wants to go electric and get clean. To do so, it’s getting its hands on minerals critical for batteries and taking a stake in the electric vehicle-supply chain. That should put countries and companies prone to announcing ambitious plans but then doing little to make them a reality on high alert.

As shortages loom and firms attempt to secure prohibitively expensive resources in a bid to scale up manufacturing, Saudi Arabia has drawn in lithium miners and battery makers to set up operations, filling a critical gap. The country wants 30% of cars on its capital city’s roads to be electric by the end of this decade.

Australian battery chemicals and technology company EV Metals Group Plc said it was kicking off the development of its processing plants for lithium hydroxide monohydrate — a key compound for batteries — deepening its plans in the kingdom
. The firm has worked with its partners for the past two years on feasibility studies, and the facility now plans to produce high-grade chemicals for cathode materials in powerpacks, an important component that EV makers are trying to get their hands on. Another Australian firm, Avass Group, announced it signed an agreement in February to jointly manufacture electric vehicles and lithium batteries with the country.

Along with these commitments, Saudi Arabia’s Ministry of Industry and Mineral Resources has announced $6 billion of projects as part of a larger push to boost its mining industry. It’s also processing almost 150 exploration license applications from foreign companies. The government signed an agreement to buy as many as 100,000 electric vehicles over 10 years from Lucid Group Inc, an EV maker that the country’s sovereign wealth fund has a stake in. It is allocating more than $3 billion in financing and incentives to set up the plant over the next decade and a half. Foxconn Technology Group, the largest assembler of iPhones, was in talks to establish a $9 billion facility that could make chips and EV parts.

Creating manufacturing and processing facilities within its borders is a shrewd and prescient move. Not only will it eventually help bring down the costs, but more immediately — and importantly — will ensure the nation becomes a key part of the global electric vehicle-value chain.
So far, besides China and its behemoth battery makers, few others have been able to achieve manufacturing scale.

Saudi Arabia has the resources, capital and conviction — and that’s exactly what’s missing for many companies and countries. It’s now using its oil-price and demand advantage to make a transition that others are struggling with. Its geographical position adds to that, allowing it to supply Europe and get resources from China and Australia. The kingdom has started assessing and issuing mining licenses quickly to tap into its mineral resources, with an estimated potential value of $1.3 trillion. Compare that to the US, where permitting is held up and approvals for such extraction plans have fallen to multi-year lows.

Meanwhile, it could develop its own resources, too: The lithium in the salty brine byproduct around its oilfields is becoming a key source for the metal as a supply deficit widens. Researchers are now working on economically efficient ways to remove and process the lithium into a pure enough form for use in batteries.

Saudi Arabia’s advance into battery materials, as shortages raise costs and companies’ battle tightening green regulations to get ahead, is turning what stands to be a huge threat to its economy into a long-term benefit.


It’s almost too late for the US and parts of Europe to catch up. Other places in the Middle East are also looking to make the transition away from their economic reliance on oil toward greener technology. Abu Dhabi recently drew in a lithium firm to build facilities at the Khalifa Industrial Zone to extract the metal and recover valuable by-products from lithium-mica and phosphate minerals.

It shouldn’t be a surprise, then, if firms and nations soon end up swapping their dependence on Saudi Arabian oil for critical battery materials, much like they’ve had to do with China.

 
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Not sure if such news can have an an impact on Foxconn's ties with KSA.


initiatives worth $1bn​

Arab world’s biggest economy teams up with global tech giants such as Google, Amazon and Microsoft



MANUFACTURING

Al-Falih: Saudi Arabia to launch global initiative to attract supply chains​

The initiative will also focus on forging partnerships with manufacturers from the Saudi private sector: minister

Staff Writer, Saudi Gazette

September 13, 2022

RIYADH Minister of Investment Khalid Al-Falih announced that Saudi Arabia plans to launch a global initiative to attract global supply chains to the Kingdom, including iron and steel.

“The program will focus on enhancing the efficiency of global supply chains and their ability to recover by attracting foreign direct investment,” he said while addressing the 2nd Saudi International Iron and Steel Conference 2022 here on Monday.

Al-Falih said that the initiative will also focus on forging partnerships with manufacturers from the Saudi private sector. “The Kingdom has the capabilities and strategic advantages that put it in a privileged position to become a party of great importance regionally and globally in the field of iron and steel industry in the near future,” he added.

A large number of global steel industry leaders are taking part in the three-day conference, organized by the Saudi National Committee for Steel Industry.

© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).


@The SC

Do we know if KSA is pursuing other roads if Foxconn jumps out? Why not go directly with the Mainland China option? China is already a strategic partner for KSA. Am I missing something here?
 
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Not sure if such news can have an an impact on Foxconn's ties with KSA.


initiatives worth $1bn​

Arab world’s biggest economy teams up with global tech giants such as Google, Amazon and Microsoft



MANUFACTURING

Al-Falih: Saudi Arabia to launch global initiative to attract supply chains​

The initiative will also focus on forging partnerships with manufacturers from the Saudi private sector: minister

Staff Writer, Saudi Gazette

September 13, 2022

RIYADH Minister of Investment Khalid Al-Falih announced that Saudi Arabia plans to launch a global initiative to attract global supply chains to the Kingdom, including iron and steel.

“The program will focus on enhancing the efficiency of global supply chains and their ability to recover by attracting foreign direct investment,” he said while addressing the 2nd Saudi International Iron and Steel Conference 2022 here on Monday.

Al-Falih said that the initiative will also focus on forging partnerships with manufacturers from the Saudi private sector. “The Kingdom has the capabilities and strategic advantages that put it in a privileged position to become a party of great importance regionally and globally in the field of iron and steel industry in the near future,” he added.

A large number of global steel industry leaders are taking part in the three-day conference, organized by the Saudi National Committee for Steel Industry.

© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).


@The SC

Do we know if KSA is pursuing other roads if Foxconn jumps out? Why not go directly with the Mainland China option? China is already a strategic partner for KSA. Am I missing something here?
Foxconn can open many plants on top of the Saudi one..They already operate globally..
Foxconn has 12 factories in nine Chinese cities—more than in any other country..

https://en.wikipedia.org/wiki/Foxconn
 
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Not sure if such news can have an an impact on Foxconn's ties with KSA.


initiatives worth $1bn​

Arab world’s biggest economy teams up with global tech giants such as Google, Amazon and Microsoft



MANUFACTURING

Al-Falih: Saudi Arabia to launch global initiative to attract supply chains​

The initiative will also focus on forging partnerships with manufacturers from the Saudi private sector: minister

Staff Writer, Saudi Gazette

September 13, 2022

RIYADH Minister of Investment Khalid Al-Falih announced that Saudi Arabia plans to launch a global initiative to attract global supply chains to the Kingdom, including iron and steel.

“The program will focus on enhancing the efficiency of global supply chains and their ability to recover by attracting foreign direct investment,” he said while addressing the 2nd Saudi International Iron and Steel Conference 2022 here on Monday.

Al-Falih said that the initiative will also focus on forging partnerships with manufacturers from the Saudi private sector. “The Kingdom has the capabilities and strategic advantages that put it in a privileged position to become a party of great importance regionally and globally in the field of iron and steel industry in the near future,” he added.

A large number of global steel industry leaders are taking part in the three-day conference, organized by the Saudi National Committee for Steel Industry.

© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).


@The SC

Do we know if KSA is pursuing other roads if Foxconn jumps out? Why not go directly with the Mainland China option? China is already a strategic partner for KSA. Am I missing something here?
Are you telling Foxconn to not build a factory in India and build it in Saudi Arabia i don't get why you brought india into this ?
Are you telling them that since india is bad they should not build it here and stop



@Khan2727
 
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Are you telling Foxconn to not build a factory in India and build it in Saudi Arabia i don't get why you brought india into this ?

Yes, I prefer them to build a factory in KSA than in India. Anyway this might have nothing to do with the possible factory in KSA, just mentioning it, as it is recent news involving Foxconn and the establishment of a factory in another country.

I think Vietnam was mentioned also.

Anyway India is a big and cheap market so it probably makes sense for them. Vietnam similarly although in a smaller scale.

Foxconn can open many plants on top of the Saudi one..They already operate globally..
Foxconn has 12 factories in nine Chinese cities—more than in any other country..

https://en.wikipedia.org/wiki/Foxconn

The question is if such news could negatively affect a possible establishment of such a factory in KSA by Foxconn. Since the news broke, I have tried to find some new news about Foxconn establishing a factory in KSA but I have not really found much up to date news.

After all the establishment of such a factory would be a very important step in KSA's ongoing industrialization and self-sufficiency push.
 
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Yes, I prefer them to build a factory in KSA than in India.
Why what are your reasons ?

Yes, I prefer them to build a factory in KSA than in India. Anyway this might have nothing to do with the possible factory in KSA, just mentioning it, as it is recent news involving Foxconn and the establishment of a factory in another country.

I think Vietnam was mentioned also.

Anyway India is a big and cheap market so it probably makes sense for them. Vietnam similarly although in a smaller scale.



The question is if such news could negatively affect a possible establishment of such a factory in KSA by Foxconn. Since the news broke, I have tried to find some new news about Foxconn establishing a factory in KSA but I have not really found much up to date news.

After all the establishment of such a factory would be a very important step in KSA's ongoing industrialization and self-sufficiency push.

The question is if such news could negatively affect a possible establishment of such a factory in KSA by Foxconn.

Why will it negatively impact them ?


Not sure if such news can have an an impact on Foxconn's ties with KSA


Why what impact ?
 
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Yes, I prefer them to build a factory in KSA than in India. Anyway this might have nothing to do with the possible factory in KSA, just mentioning it, as it is recent news involving Foxconn and the establishment of a factory in another country.

I think Vietnam was mentioned also.

Anyway India is a big and cheap market so it probably makes sense for them. Vietnam similarly although in a smaller scale.



The question is if such news could negatively affect a possible establishment of such a factory in KSA by Foxconn. Since the news broke, I have tried to find some new news about Foxconn establishing a factory in KSA but I have not really found much up to date news.

After all the establishment of such a factory would be a very important step in KSA's ongoing industrialization and self-sufficiency push.
The answer is no..Since they have signed on it.. It might take 2 or 3 years to build the factory..
 
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The answer is no..Since they have signed on it.. It might take 2 or 3 years to build the factory..

Bro, are you sure that an official deal was signed? Was it not a memorandum of understanding or initial talks? That might explain why there has not been a lot of news since the news first broke.

I can't find anything on Foxconn's website.
 
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Bro, are you sure that an official deal was signed? Was it not a memorandum of understanding or initial talks? That might explain why there has not been a lot of news since the news first broke.

I can't find anything on Foxconn's website.
Riyadh wants the company to guarantee that at least two-thirds of its foundry production will be directed to Foxconn's existing supply chain to ensure there are buyers for its products and that the project is ultimately profitable, a person familiar with the matter said.

Foxconn is seeking massive incentives including financing, tax holidays, and electricity and water subsidies in exchange for help in establishing high-tech manufacturing in the country as Saudi Arabia seeks to diversify its economy away from oil, people familiar with the matter said.

Another person familiar with the matter said Saudi Arabia could offer direct equity co-investment, industrial development loans, low-interest debt from local banks, and export credits to compete with other jurisdictions Foxconn might consider.

Saudi authorities and Foxconn did not respond to requests for comment.


https://www.utmel.com/blog/news/oth...llion-to-build-a-chip-factory-in-saudi-arabia
 
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Riyadh wants the company to guarantee that at least two-thirds of its foundry production will be directed to Foxconn's existing supply chain to ensure there are buyers for its products and that the project is ultimately profitable, a person familiar with the matter said.

Foxconn is seeking massive incentives including financing, tax holidays, and electricity and water subsidies in exchange for help in establishing high-tech manufacturing in the country as Saudi Arabia seeks to diversify its economy away from oil, people familiar with the matter said.

Another person familiar with the matter said Saudi Arabia could offer direct equity co-investment, industrial development loans, low-interest debt from local banks, and export credits to compete with other jurisdictions Foxconn might consider.

Saudi authorities and Foxconn did not respond to requests for comment.


https://www.utmel.com/blog/news/oth...llion-to-build-a-chip-factory-in-saudi-arabia

I hope that more official news will soon emerge. A Foxconn factory with an entire domestic supply chain would be really important for KSA and impact all related sectors in a significant way.
 
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Hugely important, fantastic and related news.

Nov 4, 2022 - 01:41 pm

Saudi Arabia presents its very own EV brand​


1667740052891.png


Saudi Arabia has unveiled its first electric car brand. It is called Ceer and is a joint venture between the Saudi sovereign wealth fund PIF (Public Investment Fund) and the Taiwanese contract manufacturer Foxconn. The latter will develop the electric platform for a range of Ceer models, including sedans and SUVs.


The vehicles will be manufactured in Saudi Arabia and sold in the Middle East and North Africa (MENA) region from 2025. Components from BMW will also be licensed for Ceer’s electric vehicles. In identical press releases, the partners announce that they want to create an e-vehicle portfolio “that will lead the way in infotainment, connectivity and autonomous driving”. The duo did not elaborate on the planned vehicles and production capacities.


On the other hand, Saudi Arabia sets economic targets for the brand: Ceer is expected to attract more than 150 million US dollars in foreign direct investment and create up to 30,000 direct and indirect jobs. The US electric car manufacturer Lucid Motors is also building a factory in Saudi Arabia that will be designed for an annual capacity of 150,000 electric cars. The government of Saudi Arabia will buy up to 100,000 Lucid electric cars over a ten-year period, according to an agreement signed in April 2022.


The Saudi sovereign wealth fund PIF focuses on developing promising sectors that can help diversify Saudi Arabia’s economy. The Saudi Arabian government is very keen on the automotive sector: even before the current brand launch and the investment in Lucid Motors, the PIF was already known in the industry – for example, as an investor in Tesla (although there was a quasi-exit in 2020) and more recently in Aston Martin.


For Foxconn, the joint venture with the PIF is another mainstay. Chairman Young Liu describes it as a pleasure to create a new automotive company focused on designing and manufacturing electric vehicles in and for Saudi Arabia. “We will leverage Foxconn’s technological expertise to support Ceer’s vision of creating a range of iconic electric vehicles that are built around the themes of connectivity, infotainment and autonomy. We want to make electric vehicles mainstream, and that is what Ceer is going to achieve in Saudi Arabia and the wider region”



3 minute readNovember 3, 20226:56 PM GMT+1Last Updated 3 days ago

Saudi wealth fund sets up electric car joint venture with Foxconn​

By Alaa Swilam
and Yousef Saba
A woman carrying an umbrella walks past the logo of Foxconn outside a company's building in Taipei

A woman carrying an umbrella walks past the logo of Foxconn outside a company's building in Taipei, Taiwan October 31, 2022. REUTERS/Carlos Garcia Rawlins

Nov 3 (Reuters) - Saudi Arabia's sovereign wealth said on Thursday it will make electric cars in the kingdom under a joint venture with Apple supplier Foxconn (2317.TW) as part of a push to build new industries and lessen dependence on oil.

Ceer "is the first Saudi automotive brand to produce electric vehicles in Saudi Arabia, and will design, manufacture and sell a range of vehicles for consumers in Saudi Arabia and the MENA (Middle East and North Africa) region, including sedans and sports utility vehicles," PIF said in a statement.

PIF said its cars would be available in 2025, adding Ceer would draw more than $150 million in foreign direct investment, create up to 30,000 direct and indirect jobs and is projected to contribute $8 billion to the kingdom's GDP by 2034.

The joint venture "will license component technology from BMW for use in the vehicle development process," PIF said in a statement.

"Foxconn will develop the electrical architecture of the vehicles, resulting in a portfolio of products that will lead in the areas of infotainment, connectivity and autonomous driving technologies," it added.

An investment strategy announced last year aims for more than $100 billion in FDI annually and Saudi Arabia still lags behind those targets, with just over $4 billion in inflows in the first half of this year.

Chaired by Crown Prince Mohammed bin Salman, PIF is his chosen vehicle to drive efforts to diversify the economy and wean it off oil.

Lucid Group Inc, which is more than 60% owned by PIF, is building an electric vehicle assembly plant in Jeddah with an eventual capacity to manufacture 150,000 vehicles a year. The Saudi government signed a deal with Lucid to buy up to 100,000 of its cars over the next 10 years.

A Lucid spokesman could not be immediately reached for comment.

The kingdom is also making a push into mining and said in May that it would build an electric vehicle battery metals plant.

"We will leverage Foxconn's technological expertise to support Ceer's vision of creating a range of iconic electric vehicles that are built around the themes of connectivity, infotainment and autonomy," Foxconn Chairman Young Liu said, according to PIF's statement.

"We want to make electric vehicles mainstream, and that is what Ceer is going to achieve in Saudi Arabia and the wider region," he added.

PIF did not disclose funding details and did not say how much a Ceer plant would cost or where in the kingdom it would be built. A PIF spokesman could not be reached for further comment.

The Wall Street Journal reported in March that Saudi Arabia and Foxconn were in talks to jointly build a $9 billion facility that could make microchips, electric-vehicle components and other electronics in NEOM, a futuristic $500 billion city being built in Saudi Arabia's desert.


Best thing that could happen along with the Lucid Motors. KSA will have a incredibly strong position.

Also very important to have Foxconn directly involved.

Absolutely fantastic news and a true game changer!

Riyadh wants the company to guarantee that at least two-thirds of its foundry production will be directed to Foxconn's existing supply chain to ensure there are buyers for its products and that the project is ultimately profitable, a person familiar with the matter said.

Foxconn is seeking massive incentives including financing, tax holidays, and electricity and water subsidies in exchange for help in establishing high-tech manufacturing in the country as Saudi Arabia seeks to diversify its economy away from oil, people familiar with the matter said.

Another person familiar with the matter said Saudi Arabia could offer direct equity co-investment, industrial development loans, low-interest debt from local banks, and export credits to compete with other jurisdictions Foxconn might consider.

Saudi authorities and Foxconn did not respond to requests for comment.


https://www.utmel.com/blog/news/oth...llion-to-build-a-chip-factory-in-saudi-arabia

My worries are over. MbS means business! Inshallah this is just the beginning of KSA's journey.
 
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Praise be to God, 10 cooperation agreements were signed in the presence of His Excellency the Malaysian Prime Minister, Mr. Ismail bin Yaqoub @IsmailSabri60, for several projects amounting to $ 7 billion, on top of which is the semiconductor manufacturing project with DNEX and Foxconn, in response to the directives of the shrine of the Custodian of the Two Holy Mosques and His Highness the Crown Prince.

 
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Praise be to God, 10 cooperation agreements were signed in the presence of His Excellency the Malaysian Prime Minister, Mr. Ismail bin Yaqoub @IsmailSabri60, for several projects amounting to $ 7 billion, on top of which is the semiconductor manufacturing project with DNEX and Foxconn, in response to the directives of the shrine of the Custodian of the Two Holy Mosques and His Highness the Crown Prince.


Have I missed something? What is the connection between Foxconn, KSA and Malaysia?

Great news nevertheless.
 
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