"Foxconn aims to better help Apple create prototypes of new products in this new campus," a source told the Nikkei Asian Review.
Foxconn began considering new facility as soon as Apple announced plans to build an R&D facility in Shenzhen. The company is currently looking to acquire land for the project.
There's already two large Foxconn campuses in Shenzhen that are used to develop and test new technologies. The one in the Longhua district doubles as the companies headquarters in the country.
When asked for comment, Apple referred to Foxconn and Foxconn declined to comment.