Foxconn to Spend $2.6 Billion on Factory Solely for Apple Displays
In line with previous rumours, Foxconn will build a plant in Taiwan to manufacture displays exclusively for one client: Apple. The plant will be finished over the next two years and will cost about $2.6 billion to build.
Bloomberg spoke with an Innolux (Foxconn’s display unit) public relations representative to find out the details. As Sophia Cheng said, equipment installations will start in December, and the company has plans to kick start mass production of display panels by the end of 2015.
Innolux will build an advanced sixth-generation plant at its Kaohsiung Science Park campus in Southern Taiwan, Cheng said. The funds will be spent over two years with the company expecting to hire 2,300 people at the new plant, she said.
While Foxconn has dedicated plants for assembling iPhones and iPads, this would be the first time it has stepped in as a component supplier.
During the past couple years there have been reports that Foxconn has struggled to meet the demand for iPhones, but this year was somehow different. Supply of the iPhone 6 Plus has never been able to meet demand since launch, forcing Apple to hire another assembly partner, Pegatron, to increase production of the iPhone 6 in order to finally meet demand, especially as the holiday shopping season approaches.