The company outlined plans for the factory with an initial investment of 200 million euros (US$215.28 million) in 2020, but the roll-out was delayed by the Covid-19 pandemic, the source said on Monday. They declined to be identified because they are not authorised to comment on this matter.
The source did not give a timeline for when the factory in Brumath, near Strasbourg, will be up and running. Huawei did not respond to a request for comment.
A French government source said the site was expected to open in 2025.
The move comes even as some European governments restrict or ban the use of equipment made by Huawei and China’s ZTE, citing security concerns.
European leaders are also debating how to “de-risk” but also cooperate with the world’s second-largest economy. China is France’s third-largest trade partner behind the European Union and the United States.