Taiwanese manufacturer Foxconn is building a new factory in southwestern China for Huawei, according to sources who spoke to the Nikkei Asian review.

It comes as wages in eastern China and Taiwan are rising, while Huawei is seeking to lower costs for their local smartphone offerings.

According to the sources, the factory will be built in Guizhou, which is also within the home-province of Huawei CEO Ren Zhengfei.

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Cate Cadell

Cate is a tech writer. She worked as a journalist in Australia, Mongolia and Myanmar. You can reach her (in Chinese or English) at: @catecadell or catecadell@technode.com