Foxconn Considers Producing Smaller Displays at Wisconsin Plant to Save Costs [Report]

Foxconn Technology Group is considering producing small to medium sized displays at its $10 billion factory in Wisconsin, reports Nikkei. Originally the company intended to use the plant to build large panels, mainly for TVs.

Last year, chairman and founder Terry Gou announced plans for a $10 billion LCD factory following President Trump's call to bring manufacturing back to America. The project is said to create 13,000 jobs in Wisconsin over four years.

"Previously, Foxconn planned to build a 10.5th-generation display manufacturing factory, which is more suitable for large-sized displays," supply chain sources told Nikkei. "But later they figured out that it might be more feasible and efficient to build a sixth-generation display plant or an 8.5th-generation factory from which they could move some equipment from Asia."


An incomplete local supply chain was reportedly a big obstacle for Foxconn's plan to produce TV screens in the state.

"It would require other companies like Corning to also set up a glass substrate facility nearby, as it's almost impossible to ship fragile, huge size glass materials from a distant place," one person said.

Eric Chiou, an analyst at WitsView, believes that Foxconn's new facility will aim to supply displays for Apple's iPhone. He notes that small-to-medium display manufacturing is "a reasonable turn" for Foxconn and "it could lower the initial cost substantially and generate returns faster."

More details in the full report linked below...


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