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Foxconn Electronics and Sharp plan to cooperatively set up a 10.5G or 11G LCD TV panel factory in China at an estimated total investment of JPY800 billion (US$6.95 billion), with Foxconn mainly funding the plant and Sharp to provide manufacturing technology, according to Japan-based Nikkei.
Foxconn is a majority shareholder of Sharp. The two companies are seeking a factory site in Guangzhou City, southern China, but may talk with other cities for better offers. A portion of the total investment is expected to come from the local government.
LCD TV panels produced by Taiwan-based Innolux, of which Foxconn is a majority shareholder, Japan-based Sakai Display Products, a joint venture of Foxconn and Sharp, as well as Sharp account for 20% of global output, ranking third next to Samsung Display and LG Display.
While Sakai Display Products produces LCD TV panels at a 10G factory, the new facility to be set up in China will use larger glass substrates to lower production cost and is planned to start production in 2019.
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