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Apple supplier Hon Hai to invest $40 million in US plant

TAIPEI (Reuters) - Taiwan's Hon Hai Precision Industry Co Ltd (TAI:2317), the world's largest electronics manufacturer, said on Friday it plans to invest $40 million in the U.S. state of Pennsylvania as part of its diversification away from its low-margin contract business.

The company said it will invest $30 million to hire 500 employees in Harrisburg, Pennsylvania, over the next two years to build a high-end supply chain and will invest $10 million to jointly develop robotics with Carnegie Mellon University.

"Investing in the U.S. is not for manufacturing for specific brands as speculated in the market," company chairman Terry Gou said. "We are here to build a high-precision, high-tech and high value-added manufacturing industry."

The Taiwanese company, better known by the trading name Foxconn and the major maker of Apple Inc (NSQ:AAPL) products, said earlier this month it was considering building a plant in Arizona to make large display panels and large-panel TVs to expand in the U.S. market.

(Reporting by Clare Jim; Editing by Matt Driskill)