The worlds top iPhone assembler Foxconn is preparing to launch a $9 billion chip-making project in China's Zhuhai district, as trade wars continue between the U.S. and China.

Foxconn's project will be funded by the Zhuhai governorate. The investment comes as a part of China's "Made in China 2025" industrial policy, which aims to dominate cutting-edge technologies.

Construction of Foxconn's new facility will start by 2020 and is expected to challenge Taiwan Semiconductor Manufacturing. Foxconn also aims to decrease its reliance on Apple, which supplies half of the company's annual revenue.

The project will produce chipsets for ultra-high definition TV's, camera sensors and various sensors to be used in various industries.