Hon Hai Precision Industry Co (鴻海精密), which assembles iPhones and iPads for Apple Inc, said it is mulling construction of an LCD panel plant in China, but teaming up with Huawei Technologies Inc (華為) would not be an option.
The remarks came after the Chinese-language Commercial Times reported earlier this week that Hon Hai planned to join hands with Huawei to build a 25 billion yuan (US$3.93 billion) sixth-generation (6G) low-temperature polysilicon (LTPS) panel facility in Guizhou Province.
Huawei, which makes telecoms equipment and smartphones, was reportedly to invest 5 billion yuan, while local government funding would also help bankroll the construction plan, the newspaper said.
“Huawei has been an important customer of Innolux Corp (群創) for a long time, but Huawei does not invest in any of its component suppliers,” Hon Hai chairman Terry Gou (郭台銘) told reporters on Wednesday.
Innolux, which is 4.61 percent owned by Hon Hai, is Taiwan’s biggest LCD panelmaker.
“Hon Hai and Innolux have sufficient capital [to build their own factories]. The report is total media speculation,” Gou said.
Hon Hai’s policy is to build factories around the globe, including in China, to cope with customer demand by supplying components and services locally, Gou said.
“If you want to secure your market [position], you have to do so ... but forming a joint venture with Huawei is definitely not our intention,” he said.
Hon Hai is seeking to build an advanced flat-panel factory in China on its own, he added, without elaborating.
As Chinese companies focus on 8.5G factories, supplies of LCD panels will probably exceed demand by more than 9 percent in the fourth quarter, market researcher TrendForce Corp (集邦科技) said yesterday, adding that three new 8.5G production lines from China will ramp up production.
TrendForce said panelmakers might have to consider cutting production to support panel prices, which are expected to fall to near-cost levels for most producers this quarter or next.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
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