Home
Tv
Tv News
Foxconn Joint Venture to Build $8.8 Billion LCD Plant in China

Foxconn Joint Venture to Build $8.8 Billion LCD Plant in China

By Reuters | Updated: 2 January 2017 10:17 IST

Highlights

Plant will have capacity equating to CNY 92 billion a year
Aim to increase production for large screen TVs and monitors in Asia
Global LCD output was hit this year by the closure of a Samsung factory

A joint venture between Hon Hai Precision Industry Co, known as Foxconn, and Sharp Corp plans to build a CNY 61 billion ($8.8 billion or roughly Rs. 59,685 crores) factory in China to produce liquid-crystal displays (LCDs).

Sakai Display Products Corp's plant will be a so-called Gen-10.5 facility specialising in large-screen LCDs and will be operational by 2019, the company said at a signing event with local officials in Guangzhou on Friday. It said the plant will have capacity equating to CNY 92 billion a year.

The heavy investment is aimed at increasing production to meet expected rising demand for large-screen televisions and monitors in Asia.

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.

(Also see: Sharp-Foxconn Said to Stop Supplying TV Panels to Samsung to Stem Losses)

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.

In May, Shenzhen China Optoelectronics Technology Co, a subsidiary of TCL Corp, announced that it would begin construction on a CNY 50 billion LCD plant in Shenzhen.

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 CNY 15.1 billion in the company.

The venture will also sell 436,000 shares for CNY 17.1 billion to an investment co-owned by Hon Hai Chairman Terry Gou, giving Hon Hai a 53 percent interest in the business and lowering Sharp's stake from to 26 percent from 40 percent.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.