Foxconn Electronics (Hon Hai Precision Industry's) plans to invest US$10 billion in Chengdu, China reportedly to pave the way for Chimei Innolux (CMI) to set up an advanced TFT-LCD panel production plant in China, according to China media reports.
CMI indicated that the company will invest in China but the project is still under evaluation.
Foxconn's US$10 billion investment will mainly focus in its production base in Chengdu, and sources from vendors at the base noted that the investment is for a complete supply chain for LCD TV assembly, LCD module production, LED backlight unit (BLU) production, LED packaging and lighting sources production.
However, an investment like it is unlikely to exceed US$10 billion. According to Foxconn's announcement in July 2010, the company was planning to invest a total of US$64 million in Chengdu, Sichuan province and Zhengzhou, Henan province, of which only US$20 million was for Chengdu. Based on Foxconn's plans, the Chengdu investment will focus on LCD TVs and tablet PCs, notebooks in Chongqing area, and handsets in the Zhengzhou area.
Foxconn's high-amount investment possibly includes projects for an advanced LCD panel production plant, according to a Chinese-language report on YICAI.com. The report noted that there is a US$5 billion LCD panel project going on under the name of Qunkang Technology at the Chengdu production base, and Foxconn is understood to be the parent company of the LCD company. Qunkang registered with US$38 million in capital on June 26, 2010.
Qunkang currently is hiring examiners and operators for LCD panel production with monthly salaries of 1590-2390 yuan (US$238.91-359.12) (not including overtime). YICAI.com previously reported that Foxconn is planning an 8.5G plant around the Chengdu area.
Foxconn's Taiwan-based LCD affiliate CMI noted that it is still evaluating China investments, and said that it will definitely invest in China but all details such as schedule, investment amount, and location are still under discussion.
In addition, AU Optronics' (AUO's) review for China investment was rumored to be passed in October. However, AUO's review was not listed for discussion during the latest meeting, confirming that AUO's review will not be handled by the end of October.