Foxconn and the government of Hunan Province have signed an agreement on December 8, 2010 to establish production plants and R&D centers in the Hunan Province, located in central China, according to the Commercial Times of Taiwan. As per the agreement, the new bases will be used for hardware manufacturing, software development, telecom networks, cable TV networks, and Internet integration, and new product R&D, manufacturing, and sales. It is reported that the new bases will be located in the capital city of Changsha and Hengyang City. It is projected that Hunan government has offered tax reductions to support Foxconn's future operations in the province. Currently, approximately 10% of Foxconn's nearly one million employees come from the Hunan Province, according to the same source.