Want to keep the TNW Conference vibe going?? Tickets for TNW2022 are available now >>

The heart of tech

This article was published on September 14, 2012

Not to be outdone by Foxconn, Samsung too is considering a factory in Indonesia

Not to be outdone by Foxconn, Samsung too is considering a factory in Indonesia
Jon Russell
Story by

Jon Russell

Jon Russell was Asia Editor for The Next Web from 2011 to 2014. Originally from the UK, he lives in Bangkok, Thailand. You can find him on T Jon Russell was Asia Editor for The Next Web from 2011 to 2014. Originally from the UK, he lives in Bangkok, Thailand. You can find him on Twitter, Angel List, LinkedIn.

Samsung is following in the footsteps of Apple’s manufacturing partner Foxconn, after an executive from the Korean electronics giant revealed it is considering plans to build a mobile manufacturing center in Indonesia.

Lee Kanh Hyung, who heads up the mobile maker’s business in Indonesia, confirmed to Dow Jones that the company is “interested in having a mobile phone plant” in the country, and, like Foxconn, it has already engaged in conversations with the Indonesian government to investigate the opportunity.

The possibility for a mobile manufacturing facility in the country follows a number of recent commitments that Samsung has made to bolster its supply chain and technologies. Last month, the company announced plans to spend $4 billion revamping its chip factory in Austin, Texas, and it broke ground on a $7 billion flash memory making facility in China earlier this week.

Indonesian Industry Minister M.S. Hidayat confirmed he is pulling together a package of benefits and incentives to encourage a firm commitment from Samsung, which is yet to clarify further details of its strategy for a potential Indonesian plant.

The government is also keen to tie down a commitment from Foxconn, which produces Apple’s iPads and iPhones and works with other tech industry players. The Taiwanese company is considering a project that is said to be worth $1 billion, but government officials are optimistic that its total investment could reach $10 billion, and help establish a regional tech hub in the country.

Apple opened pre-ordering of the eagerly awaited iPhone 5 today but Foxconn has come under fire in China this week, after a journalist published a report critical of the firm following 10 days spent working undercover helping to produce the device. Foxconn responded with a promise to investigate the claims, and it admitted that it “is not perfect” but is trying to reverse its reputation for poor working conditions.