According to latest reports, Foxconn Technology Group founder Terry Gou revealed that the company is set to build an $8.8 billion television flat-panel factory in Guangzhou, China.
In the planned factory company will manufacture advanced liquid-crystal displays with expertise from Sharp Corp., the Japanese electronics brand taken over this year by Foxconn.
Meanwhile Mr. Gou praised the manufacturing atmosphere in China, where the Taiwanese-based firm makes Apple Inc.’s iPhones and other merchandises. His comments arrives amid calls by U.S. President-elect Donald Trump to execute 45% tariffs on goods made in China as a resources to inspire more manufacturing in the U.S.
However Mr. Gou didn’t directly mention Mr. Trump or his tariff proposals. In the past, Foxconn officials said they were considering growing their savings in the U.S., but Mr. Gou’s comments Friday suggest Foxconn stays committed to business in China, where it has most of its manufacturing units.
Furthermore M. Gou Foxconn’s founder made a jagged contrast with India, which is hoping to become a center for iPhone assembly, saying it is not a “manufacturing power country” like China. M. Gou has previously played governments off each other as he try to find better investment terms, holding talks with different nations or cities but only investing in the end in one.
Moreover according to reports the $8.8 billion investment to construct the flat-panel factory will be completed by Sakai Display Products Corp., which is mostly possessed by Mr. Gou personally. Sharp owns a small stake in Sakai.
The proposed Guangzhou factory will start production in 2019 of 10.5-generation 8K displays, smart TVs and electric whiteboards, according to Foxconn Technology, which is officially known as Hon Hai Precision Industry Co. It aims to hit an annual production value of 92 billion Yuan.