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Foxconn to Spend $2.6 Billion on Taiwan Factory to Supply Apple With Displays?

Posted November 20, 2014 at 5:50pm by iClarified · 8597 views
Foxconn will spend $2.6 billion over the next two years on a new factory in Taiwan to supply displays exclusively for a client, likely Apple, reports Bloomberg.

Equipment installation will commence next month with mass production of panels to start by the end of 2015 after an urgent request for exclusive capacity, Sophia Cheng, a public relations representative for Foxconn’s display unit Innolux Corp. (3481), said by phone, citing comments made by President Wang Jyh-chau at a press conference today.

In the past, Apple has tried to get dedicated access to factories to ensure component supply. It gained priority access to memory chips from Samsung and sapphire glass form GT Advanced. However, TSMC reportedly rebuffed Apple's attempts to pay cash for exclusive capacity.

Innolux will build an advanced sixth-generation plant at its Kaohsiung Science Park campus in Southern Taiwan. The plant will employee an additional 2,300 people.

While Foxconn dedicated factories for assembling Apple iPhones and iPads, this would be the first for components.

Notably, the WSJ reported last month that Foxconn was in talks to build a display factory in northern China that would make high-end screens for phones.

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