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Foxconn, Guangzhou LCD panel factory, which is said to sell 61 billion yuan: the company does not own a panel factory

via:快科技     time:2019/8/2 19:09:12     readed:1170

The 10.5 generation line LCD panel factory in Zengcheng City, Guangzhou, announced its investment on December 30, 2016. it plans to invest 61 billion yuan and officially start production in 2017. It mainly produces large size LCD panels of 10.5 generation lines, especially 65 size panels for 8K ecology, with an estimated annual output value of 92 billion yuan.

Foxconn denied owning the factory, because the direct investor at that time was SDP, which signed the Framework Agreement on the Construction of the 10.5 Generation Display Eco-Industrial Park with the Guangzhou Municipal Government.

SDP is a LCD panel and module manufacturing company located in Osaka prefecture, Japan. It was founded in 2009. It was originally a subsidiary of Sharp. After Sharp was acquired by Foxconn, they can also be said to be a subsidiary of Foxconn, but the ownership is complex.Because Foxconn founder Terry Gou holds the same shares as Sharp through personal ownership, we can understand why Foxconn Group denied owning the plant.

But the operation and decision-making of SDP is obviously not independent, it is managed by Foxconn people, which is also true.

As for why Foxconn is selling this 10.5 generation line panel factory, which has not yet started mass production, the reasons are not complicated. First, the market situation of large-scale LCD has changed dramatically.JD.COMSeveral companies in China, such as Fangfang, have been slashing prices and expanding production. The LCD panel industry is having a tough time. Several companies in Korea, mainland China and Taiwan are cutting production capacity. Foxconn wants to get rid of this new factory, otherwise the more production is thankful.

The second reason is that the United States levies taxes, which will lead to higher costs for Foxconn's panels to be sold to the United States, and 8K.televisionAn important market was originally the United States.

Today Sharp also released Q2 quarterly earnings, with revenue of 514.9 billion yen, down 4% year-on-year. Net profit plunged 35% to 12.5 billion yen. Operating profit of 8K Ecology Department including panel business plunged 54%, which is the first time that Q2 quarterly earnings plunged in three years since Sharp was acquired.

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