Foxconn Technology Group and Saudi Arabia are expected to jointly build a $9 billion facility that can make microchips, electric-vehicle components and other electronics.
Foxconn, which is a supplier to Apple Inc, did not immediately respond to a request for comment, official sources said.
According to reports, the Saudi authorities are reviewing an offer from the company, known as Hon Hai Precision Industry Co.
The offer includes building a dual-line foundry for surface-mount technology and wafer fabrication in NEOM.
Reportedly, Riyadh wants the company to guarantee that it would direct at least two-thirds of the foundry’s production into Foxconn’s existing supply chain.
This is to ensure there are buyers for its products and the project is profitable, sources said.
The company said last year that it is planning to build an EV project in the Middle East, focusing on software and cloud infrastructure for passenger cars.