Foxconn and Sharp will invest nearly $7 billion in a new factory for production of LCD panels for TVs
Foxconn Electronics and Sharp have plans to invest approximately 6.95 billion dollars in construction in China of a new factory (10.5 G or 11G) which will be engaged in the production of LCD panels for TVs.
The roles are distributed in such a way that Foxconn is mainly engaged in the financing of construction, and Sharp provides production technologies, as reported by the newspaper Nikkei.
Foxconn is a major shareholder of Sharp. The company looked after the site for the future plant in Guangzhou, but they can consider other options. Part of the investment compensates the local government.
Leaders in the production of LCD TV panels are Samsung Display and LG Display. Sharp is ranked third with a share of 20%. In addition, the LCD panel does Innolux, a controlling stake which also owns Foxconn, and Sakai Display Products, which is a joint venture between Foxconn and Sharp.
The launch of the new factory is scheduled for 2019.