Foxconn Technology Group, the world's biggest contract electronics maker, has signed a cooperation agreement with Jinan municipal government to jointly set up an industrial fund of 3.75 billion yuan ($545.9 million) to bolster the development of the city's semiconductor sector.

According to the agreement, Foxconn will utilize its resources to build five integrated circuit design companies and one high-power semiconductor company in Jinan. 

In a recent interview, Guo Taiming, chairman of Foxconn, said that the company will strengthen its deployment in the semiconductor sector and Foxconn has also set up a sub-group to in integrate resources to execute its semiconductor plans. 

A Chinese netizen browses the website of Foxconn Technology Group in Jinan city, East China's Shandong province, Feb 11, 2018. [Photo/IC] 

Workers at a Foxconn Technology Group plant. [Photo provided to chinadaily.com.cn] 

Workers at a plant of Foxconn Technology Group. [Photo provided to chinadaily.com.cn]