Foxconn Will Invest $8.8 Billion in New China Factory

2 Jan

Foxconn plans to build an $8.8 billion television flat-panel factory in Guangzhou which will make advanced liquid-crystal displays with technology from Sharp.

In a recent speech announcing the deal, Foxconn CEO Terry Gou praised the manufacturing environment in China, where Foxconn manufactures iPhones and other products. The $8.8 billion (61 billion yuan) investment to build the flat-panel factory will be made by Sakai Display Products Corp., which is mostly owned by Gou himself.

Sharp owns a minority stake in Sakai. According to The Wall Street Journal, Gou has occasionally personally taken on riskier investments for Foxconn, because he thought it was safer for the company’s shareholders.

In 2019, the new Guangzhou facility is expected to begin production of 10.5-generation 8K displays, smart TVs and electronic whiteboards in 2019. It is projected to reach an annual production value of 92 billion yuan.

Gou didn’t directly refer to President-elect Donald Trump or his tariff proposals during his speech. Previously, Foxconn officials said they were considering increasing their investments in the U.S., Gou’s recent remarks suggest Foxconn remains committed to manufacturing in China, where it has most of its assembly lines.

In Henan province’s capital city, Zhengzhou, Foxconn’s factory can produce 500,000 iPhones a day. The Henan local government has given more than $1.5 billion to Foxconn to build large sections of the factory and employee housing. The local government also built roads and power plants to support iPhone production.