Hon Hai Industries, parent company of Apple's iPod manufacturing partner, Foxconn, plans to set up a new billion dollar factory in northern China.

Foxconn's new China plant will be situated in the same region as Intel's $2.5 billion chip factory, a report claims.

The plant will produce PCBs and connectors for the company's customers, who include Apple. Dell. Sony and HP.

Reuters meanwhile is reporting that Foxconn is building its second LCD display factory in the Czech Republic.