Foxconn and Sharp to Build $8.8 Billion LCD Factory in China
According to a Reuters report, Apple’s largest contract manufacturer Foxconn is planning to build an $8.8 billion factory in collaboration with Sharp in China, that will produce advanced liquid-crystal displays (LCDs). The project is aimed at increasing production to meet rising demand for large-screen LCD TVs and monitors in Asia.
The $8.8 billion investment to build the flat-panel factory will be made by Sakai Display Products Corp., which is mostly owned by Foxconn Group’s founder Terry Gou. The new plant in Guangzhou, which will have annual production capacity equating to $13.25 billion, will be a so-called Gen-10.5 facility specializing in large-screen LCDs and will be operational by 2019, according to Foxconn.
Global LCD output was hit this year by the closure of a Samsung factory that accounted for 3 percent of the market, as well as factory stoppages in Taiwan after an earthquake in March. China’s largest LCD panel maker, BOE Technology Group, began construction on its own Gen-10.5 plant in Hefei in December last year, with production scheduled to begin in 2018.
Sakai Display Products Corp’s plans for the Guangzhou plant come as Hon Hai seeks to turn the joint venture into a subsidiary, investing a total of 15.1 billion yuan in the company.
The venture will give Foxconn a 53% interest in the business, while lowering Sharp’s stake to 26% from 40%.