Foxconn Eyes $8.8B China Sale
One of Apple’s main assemblers of its iPhone, Taiwan’s Foxconn, is exploring the sale of its new US$8.8 billion display panel factory in China. Foxconn is talking to banks in a bid to find buyers for the plant, due to waning demand for LCD displays.
The factory is being built in the southern Chinese city of Guangzhou and its sale would come at a delicate time for Foxconn, which has extensive investments in China.
As well as Apple, Foxconn has a large number of US clients and is having to navigate a tricky path amid the protracted trade war between Washington and Beijing.
The sale of the display panel plant would mark one of its largest divestments from China.
Foxconn’s discussions are at an initial stage and it has not yet come up with a price tag for the so-called Gen-10.5 facility.
Many of Foxconn’s plants have trimmed back production and the company had been planning to delay most of its production in Guangzhou for at least six months before news of the possible sale leaked.