“Foxconn, the company that assembles the bulk of the world’s iPhones, is in preliminary talks to build a factory in northern China that would make high-end screens for the phones as well, in a sign of the company’s ambition to move up the electronics food chain,” Lorraine Luk reports for The Wall Street Journal.
“Foxconn, formally known as Hon Hai Precision Industry Co., is discussing a possible investment with the government of Zhengzhou, about 750 kilometers south of Beijing, according to people familiar with the talks,” Luk reports. “The two sides are discussing terms such as how to divide the investment, which could reach as much as 35 billion yuan ($5.7 billion), the people said.”
‘It remains unclear whether Apple Inc. — which relies on Foxconn to make the majority of its iPhones — or other investors are being approached to invest in the display plant. Currently, Apple uses screens made by suppliers in South Korea and Japan,” Luk reports. “For Apple, buying displays from Foxconn would help the company diversify its screen suppliers beyond Japan’s Sharp Corp. and Japan Display Inc. and South Korea’s LG Display Co. ‘Foxconn hopes to capture the growing demand for high-resolution, energy-efficient displays and supply Apple and other smartphone makers in the next few years,’ said a person familiar with the situation.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]