Fox­conn to build LCD plant in US

China Daily (Hong Kong) - - BUSINESS - By FAN FEIFEI fan­feifei@chi­nadaily.com.cn

Fox­conn Tech­nol­ogy Group, the world’s largest elec­tron­ics con­trac­tor, an­nounced on Thurs­day it will in­vest $10 bil­lion in the next four years to build a liq­uid-crys­tal dis­play panel man­u­fac­tur­ing fa­cil­ity in Wis­con­sin in the United States.

The in­vest­ment will be the largest new green­field in­vest­ment made by a for­eign com­pany in US his­tory, cre­at­ing 3,000 new jobs, with the po­ten­tial to grow to 13,000 jobs in the state, Fox­conn said in a state­ment.

This also sig­ni­fies the start of a se­ries of in­vest­ments made by Fox­conn in US man­u­fac­tur­ing. US Pres­i­dent Don­ald Trump and Terry Gou, founder and CEO of Fox­conn, made the an­nounce­ment dur­ing a ceremony at the White House.

The new fa­cil­ity, in south­east­ern Wis­con­sin, will man­u­fac­ture LCD pan­els used in a wide range of sec­tors — the lat­est gen­er­a­tion of tele­vi­sions, self-driv­ing cars, air­craft sys­tems, ed­u­ca­tion and en­ter­tain­ment, as well as health- care, ad­vanced man­u­fac­tur­ing sys­tems, of­fice au­to­ma­tion and in­ter­ac­tive new re­tail.

“We are thrilled to build a state-of-the-art dis­play plant in the US heart­land. As the first in a se­ries of fa­cil­i­ties we will build in sev­eral states of the US, the plant is part of our big­ger plan to cre­ate a ro­bust 8K plus 5G ecosys­tem in US,” Gou said.

He added that Wis­con­sin also of­fers a tal­ented, hard­work­ing la­bor force and has a long his­tory in ad­vanced man­u­fac­tur­ing, pre­sent­ing an ex­tra­or­di­nary op­por­tu­nity for the com­pany.

At present, the pro­duc­tion lines of LCD pan­els are mainly con­cen­trated in Asian coun­tries, such as China, South Korea and Ja­pan. An­a­lysts said Fox­conn’s Wis­con­sin fa­cil­ity marks its big­gest ex­pan­sion into the US and will help the man­u­fac­tur­ing gi­ant ex­pand its sales of large-sized LCD TVs in the US mar­ket.

“Fox­conn hopes to re­duce costs and grow its mar­ket share in the US by launch­ing the LCD panel plant. More- over, US Pres­i­dent Trump’s claim to re­vi­tal­ize man­u­fac­tur­ing, as well as pref­er­en­tial poli­cies and sub­si­dies from the state of Wis­con­sin have at­tracted Fox­conn to pro­duce LCD pan­els to sat­isfy lo­cal de­mand,” said Zhang Yan­bin, as­sis­tant di­rec­tor of Bei­jing­based con­sul­tancy All View Cloud.

Zhang said pro­duc­tion of LCD pan­els in China has al­ready reached sat­u­ra­tion point and com­pe­ti­tion from lo­cal dis­play panel man­u­fac­tur­ers, such as BOE Tech­nol­ogy Group and Shen­zhen China Star Op­to­elec­tron­ics Tech­nol­ogy is very fierce, which has pushed Fox­conn to seek new busi­ness growth point in over­seas mar­ket.

“North Amer­ica is the big­gest LCD TV mar­ket around the world and the de­mand for high-def­i­ni­tion tele­vi­sions is grow­ing very fast in this area,” said Liang Zhen­peng, a con­sumer elec­tron­ics an­a­lyst, adding es­tab­lish­ing a plant in US will avoid the tar­iffs and trade bar­ri­ers that the US has im­posed on Chi­nese en­ter­prises.

REUTERS

Em­ploy­ees work at a Fox­conn fac­tory in Longhua, Guang­dong prov­ince.

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