(Yicai Global) Feb. 1 -- Huawei Technologies has signed a deal with the local government of Xuchang city in China’s central Henan province to build a new artificial intelligence center, with planned investment of CNY1.5 billion (USD232 million), the Henan Daily reported.

The Central Plains Artificial Intelligence Computing Center is intended to be an innovation incubator and will also carry out scientific research and training, the report said, citing the agreement.

Xuchang’s gross domestic product reached CNY340 billion (USD52.6 billion) in 2019 and CNY72.1 billion (USD11.2 billion) in the first quarter of 2020, ranking it fourth among cities in Henan.

Shenzhen-based Huawei has launched a series of cooperation projects in Henan since last year, including a plan to develop the Yellow River Technology Group in partnership with local information technology firm Huanghe.

The production capacity of Huanghe brand servers, personal computers and tablets based on Huawei’s Kunpeng chip is scheduled to reach 2 million units by 2025, the two parties said.

Xuchang will promote the establishment of a hardware manufacturing base to produce Huanghe servers, PCs and mainboards, and will build a new smart city based on Huanghe architecture with local characteristics and highlights.

Editor: Tom Litting