Terry Gou to Invest 5 Billion Yuan in Electrical Cars in China’s Shanxi Province

6 Sep

Terry Gou, chairman of Foxconn Technology Group, was quoted as pledging to invest over five billion Chinese yuan in developing the electrical car industry in China’s Shanxi Province when he attended the second Jincheng businesspeople’s annual conference, Taiwan’s Economic Times reported on Sept. 4.

As a successful representative of Shanxi businessmen, Gou said the province should develop a new energy economy and stressed that his company would invest there to build the electrical car sector using the province’s rich natural resources. By doing so, he hoped his company could help transform Shanxi’s current economy that largely depends on energy export into a circular economy that is sustainable.

The Taiwanese tycoon also vowed at the conference to fully expand the group’s activities in the electrical car sector. In the meantime, he also revealed that Foxconn’s production value in Shanxi is expected to exceed 60 billion yuan this year and that the total workers will reach 100,000. In 2014, Gou plans to invest over five billion yuan in the province to develop electrical cars with the abundant energy resources there.


Foxconn has been known for years to invest in electrical cars and has already seen some achievements in automobile moulds, wires and batteries. Before that, the group had supplied auto parts to U.S. electrical car maker Telsa.

Gou had emphasized at the company’s previous shareholder meeting that electrical cars are a hot topic and that Hon Hai will make really affordable ones priced under US$15,000. His investment in Shanxin is widely seen by the industry as a key move to realize the strategy of low-priced electrical cars.

Gou, whose ancestors came from today’s Jincheng City in Shanin, has invested more than 20 billion yuan there for over a decade, according to sources. His Foxconn Group has two industrial parks in Taiyuan and Jincheng, respectively. The Jincheng park mainly manufactures industrial robots, automatic facilities, precision tools and optical lenses, while the Taiyuan park largely produces high-end smartphones and accessories.

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