According to Edmund Ding, vice president of Hon Hai, the company has inked an agreement with the municipal government of Chengdu. Ding said this is a part of Hon Hai's long-term development strategy.

Apart from the establishment of the new plant, the group will reportedly invest in Chengdu's real estate industry for the settlement of its staff.

Prior to this, Hon Hai, along with Hewlett-Packard, reached an agreement with the municipal government of Chongqing, which is also a city in Sichuan, on the construction of a plant for the production of notebooks and relevant devices.