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Hon Hai Guangzhou panel plant production to begin September:report

2019/01/19 16:14:01

Taipei, Jan. 19 (CNA) A high-definition 8K flat panel plant in Guangzhou Province, China under the corporate umbrella of Taiwan-based manufacturing giant Hon Hai Precision Industry Co. is expected to begin mass production in September this year, according to a Chinese media report published Saturday.

According to ycwb.com of Guangdong Yangcheng Evening News Digital Media Co., Chen Yong (陳勇), Guangzhou representative of China's National People's Congress, said in an interview that the investment plan for the flat screen plant, which is jointly owned by Hon Hai and Japan's Osaka-based Sakai Display Products Corp. (SDP), has been proceeding smoothly.

Chen said construction of the plant has been completed and installation of production equipment is currently underway.

He said the new plant is scheduled to kick off commercial production in September and is expected to generate about 32 billion Chinese yuan (US$4.73 billion) in production value per year.

SDP, which is a joint venture between Hon Hai and its Japanese subsidiary Sharp Corp., announced in late 2016 that it would build the advanced 10.5 flat-panel plant in Guangzhou, investing 61 billion yuan.

In August 2016, Hon Hai, known as Foxconn in the global market, acquired a 66 percent stake in Sharp, becoming the first Taiwanese firm to hold a majority stake in a prominent Japanese company.

According to ycwb.com, the flat-panel plant is the largest high-end technology investment for Guangzhou over the past four decades.

At the end of December 2016, Hon Hai Chairman Terry Gou (郭台銘) signed an agreement with the Guangzhou authorities for the investment project.

The flat-panel plant is expected to roll out large-sized high definition units, as part of Gou's plan to transform the company's operations by going beyond serving as a contract electronics maker.

Hon Hai is also investing US$10 billion in the United States to roll out high-definition flat panels as part of the company's plans to build up its expertise in 5G technology.

Market analysts said the Guangzhou plant is expected to allow Hon Hai to provide a one-stop TV production service from TV panel and other component supply to assembly, in a bid to meet the rising demand from Chinese consumers.

Analysts added that working with other TV component suppliers in the Chinese city, Hon Hai is expected to build up a comprehensive TV supply chain in China.

In addition, they said that at a time when Gou has been keen to promote TVs under the Sharp brand in the global market, the Guangzhou complex is expected to supply screens to the Japanese subsidiary.

(By Chung Jung-feng and Frances Huang)
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