Foxconn Electronics (the registered trade name of Hon Hai Precision Industry) recently visited the Hsinchu Science-Based Industrial Park (HSIP) to discuss building a fifth-generation (5G) TFT LCD plant at the park’s Chunan, Miaoli County site, confirmed James Lee, director-general of the HSIP administration. Rumors that Foxconn might enter TFT LCD production had long been circulating.
According to Lee, Foxconn originally requested five hectares of land for its TFT LCD plant but now is asking for eight hectares and would submit a formal application to park officials soon. He added that the park administration has negotiated with Taiwan Sugar Corporation to free up eight hectares by the first half of next year.
Lee said that Foxconn indicated plans to invest at least NT$20 billion in this TFT LCD plant, but company executives revealed that investment would remain conservative as the plant would mainly be supplying the company’s own needs. Industry sources, however, question whether NT$20 billion would be sufficient for construction of a 5G TFT LCD plant.
Foxconn’s plans to move into 5G TFT LCD production follows similar announcements by six other Taiwanese companies, and thus would add little to the already intense competition in the industry, claim Taiwanese TFT LCD makers.
Since Foxconn’s TFT LCD production would mainly supply its own mobile phone and notebook computer output, its entry into TFT LCD production should have little impact on the market, affirmed sources at HannStar Display.
Chi Mei Optoelectronics (CMO) added that construction of Foxconn’s TFT LCD plant would take at least another year and a half, and thus would not greatly affect the current market.
TFT LCD producers observed that obtaining the technical skill necessary for TFT LCD production will take significant time, but Foxconn may be able to pick up some employees who recently left AU Optronics (AUO) when the company changed its PDP (plasma display panel) division’s strategy, shifting its focus from manufacturing to R&D.
Article translated by Jane Wang and edited by Richard So
