The park will be located in Malu Town, Jiading District, and will use 454,000 square metres with construction expected to be phased over about three years.
Flextronics will not follow the traditional industrial park concept but, instead, develop a complete manufacturing centre that makes components, cables, plastics and metal parts needed for assembling products on site.
It will also integrate strategic suppliers who have formed key partnerships with the firm in China.
"Flextronics is the world leader in electronics manufacturing services and with Shanghai fast becoming Asia's telecommunications centre, we are excited to enhance our presence in this region," stated Ash Bhardwaj, president of Flextronics Asia.
EMS provides a whole range of services centred on manufacturing, including innovative design, engineering, tests, manufacturing and logistics solutions.
Flextronics, based in Singapore, has built up a wide manufacturing network around the world, enabling it to cut costs.
Outsourcing their manufacturing allows electronic companies to further concentrate on marketing, branding and research and development, said Bhardwaj.
Its annual revenues last year reached US$13.8 billion - double that of 2000.
Its customers include most of the big names in the industry such as Microsoft, IBM, Dell, Cisco, Siemens, Motorola, Ericsson and Alcatel.
"The construction of the Shanghai park will also meet increasing demand in China as our customers focus more on the market," Bhardwaj said.