Foxconn Plans to Spend $2.6 Billion on Dedicated Apple Display Plant in Taiwan

Foxconn Technology Group has plans to spend NT$80 Billion, or $2.6 billion, over the course of the next two years on a new factory in Taiwan to produce displays exclusively for Apple, according to Bloomberg.

In a conversation with Sophia Chang, a public relations representative for Foxconn's display unit Innolux Corp., Chang stated that equipment installation will begin next month, although she would not confirm that Apple is the client for the facility. Following an urgent request for exclusive capacity, the mass production of panels is expected to begin by the end of 2015.

Chang also mentioned that the advanced sixth-generation display plant will be built at Innolux's Kaohsiung Science Park campus in Southern Taiwan. The forecast details that the funds for the plant will be spent over a two-year building period with the company planning to hire 2,300 employees to operate the facility.

foxconn_workers_2
Foxconn has been a longtime manufacturer of Apple's products, primarily handling final assembly of the devices. After attempting to partner with Sharp in 2012 to focus on advancing LCD technologies, Foxconn was rumored to be in talks to utilize the Japanese display manufacturer's technology in order to start producing iPhone and iPad displays.

The company struggled to meet high demand for the iPhone 6 and 6 Plus when the two phones launched earlier this fall, sparking a large-scale hiring effort by Foxconn to meet production demands. Demand has been so high that Apple has reportedly tapped secondary manufacturer Pegatron to boost production on the iPhone 6, and perhaps even the iPhone 6 Plus, to help meet demand.

The new Taiwan plant announcement comes as Foxconn has reportedly been in discussions for a $5.7 billion display factory in Zhengzhou, China. Foxconn has been angling to become a larger player in the display market, seeking to win orders for iPhone and iPad displays and avoiding the sourcing of those parts from vendors like Samsung, LG Display, Sharp, and Japan Display.

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Top Rated Comments

AppleScruff1 Avatar
79 months ago

Awesome. Screw Samsung's revenues further, and Reduce/eliminate display variance. So much win. :apple:

What if they don't match Samsung quality? Still a win?
Score: 6 Votes (Like | Disagree)
Hargobind Avatar
79 months ago
I hear there is some available factory space in Mesa, Arizona... ;)
Score: 6 Votes (Like | Disagree)
sphoenix Avatar
79 months ago
No excuses now. 2015 has to be the year Apple releases a Retina Thunderbolt Display!
Score: 2 Votes (Like | Disagree)
iChrist Avatar
79 months ago

I hear there is some available factory space in Mesa, Arizona... ;)



Plenty of space, but shortage of skilled, hardworking people/slaves.

:apple:
Score: 1 Votes (Like | Disagree)
aloshka Avatar
79 months ago
I really hope this is untrue. Even LG has major quality issues with their displays used in MBA, iPhones and iPads. Foxconn currently makes cheap displays under a different name. Not large scale, but the displays are really bad. I mean visible horizontal lines pass QA.
Score: 1 Votes (Like | Disagree)
SpyderBite Avatar
79 months ago

I hear there is some available factory space in Mesa, Arizona... ;)


That factory doesn't include a few thousand laborers willing to work for less than the US federal minimum wage or without a union.
Score: 1 Votes (Like | Disagree)

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