Taipei-based Foxconn Technology Group made the much-discussed decision Thursday to move out of Shenzhen.

Some media had reported beforehand the company planned to move some of its operations to Tianjin. Foxconn will actually move its main production lines by the end of this year to Langfang, Hebei Province, which is known as the "Silicon Valley of China," according to Tong Wenxin, the spokesman of Foxconn.

Tong said that this initiative is an effort to lower the labor cost of the company.

An analyst said that the announcement of Foxconn only showed that it would move its "main production lines" to Langfang, so building new factories in Henan Province or Tianjin is not impossible.

An insider pointed out that Foxconn actually started its moving project a few years ago. The company already has production lines in Yantai, Langfang, Taiyuan, Tianjin and Beijing, and factories in India, Vietnam, Brazil, Finland and Mexico.

China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.