Neil Hughes
Foxconn's Innolux will build a new $2.6 billion sixth-generation plant in Southern Taiwan to supply displays exclusively to Apple, after the iPhone maker made an "urgent" request, it was announced on Thursday.
The new plant from Foxconn-owned Innolux Corp. will begin mass production of panels exclusively for Apple by the end of 2015, according to a representative for the company who spoke with Bloomberg. Equipment installation is reportedly set to begin next month after Innolux received "an urgent request for exclusive capacity," the report said.
Foxconn Technology Group expects to spend $2.6 billion over the next two years on the factory, which will employ some 2,300 people at the Kaohsiung Science Park campus in Southern Taiwan.
Little else about the arrangement, including display types or even what devices Foxconn might be building screens for, is known. But in recent years, reports have claimed that Innolux Corp. has been gradually squeezing out longtime LCD supplier Samsung from Apple's supply chain.
Earlier this year, it was said that Apple tapped Innolux to supply the 4.7-inch Retina displays used in Apple's current iPhone 6. Other rumored LCD suppliers are LG Display and Japan Display.
Innolux is Taiwan's largest maker of LCD screens, and Apple uses LCD technology on most of its products, including the iPhone, iPad, its MacBooks and the iMac.
In a new direction, the company will use power sipping AMOLED technology for its upcoming Apple Watch, but those tiny wrist-worn displays are expected to cost considerably more per pixel than the LCD screens used on other Apple devices.
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Wesley Hilliard
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56 Comments
Here's the thing. If it really is an 'urgent' request, that tells you Apple's projections for iPhone demand show that it won't be decreasing any time soon. Obviously demand may ease a bit for the Plus, where they can get it in stock, but you don't request a 2.6 billion dollar plant to help cure a temporary supply issue.
Shareholders, take note.
Apple must be the biggest boon to Taiwan's economy and people in their country's history. Well, if Ireland ever succumbs to EU pressures, I know where Apple could relocate their overseas operations...and probably completely tax-free.
On top of this, there must be a lot of capacity for production freeing up as Android CrapWare production slips. Apple can soak up all the production capacity there is I would think as Apple heads to the Trillion $ mark in a few years.
[quote name="TheWhiteFalcon" url="/t/183523/foxconn-investing-2-6b-into-new-display-factory-that-will-exclusively-supply-apple#post_2642422"]Here's the thing. If it really is an 'urgent' request, that tells you Apple's projections for iPhone demand show that it [I]won't be decreasing[/I] [U]any time soon[/U]. Obviously demand may ease a bit for the Plus, where they can get it in stock, but you don't request a 2.6 billion dollar plant to help cure a temporary supply issue. Shareholders, take note. [/quote] I can hardly watch AAPL these days, it's too damned exciting ... every $10 or so I see a six digit gain overall. This from quite a modest investment back when our broker told us we were nuts and demanded we signed waiver exonerating him for going against his advice.
[quote name="digitalclips" url="/t/183523/foxconn-investing-2-6b-into-new-display-factory-that-will-exclusively-supply-apple#post_2642428"] I can hardly watch AAPL these days, it's too damned exciting ... every $10 or so I see a six digit gain overall. This from quite a modest investment back when our broker told us we were nuts and demanded we signed waiver exonerating him for going against his advice.[/quote] I hope you fired that broker.