Foxconn to build another factory, upgrade LCD plant?
updated 09:45 pm EDT, Fri October 15, 2010
Expansion could cost $10B, employ 20,000 to start
Foxconn Technology Group of Taiwan, one of the principle manufacturers of high-tech devices for companies such as Apple and Hewlett-Packard, is responding to demand by seeking to invest up to $10 billion in a new factory in the Chinese city of Chengdu, Reuters has reported.
The company, who recently raised the prices it charges its clients for manufacturing popular devices such as the iPhone to cover the cost of salary increases for workers, is said to also be seeking permission to upgrade an LCD panel plant it already owns in Chengdu so it can move to an 8.5-generation technology and make larger panels. The rumored new facility would not be part of the LCD plant upgrade.
Sources tell Reuters that the new plant would employ at least 20,000 workers initially. Chengdu is located in the Sichuan province and boasts a population of 11 million. The city is northwest of, and much further inland from, Foxconn's current base of operations in Schenzhen. It is thought that wages in Chengdu are lower and available workforce more plentiful for the company.
A formal announcement will likely come when Foxconn chairman Terry Gou visits Chengdu next week. [via Reuters]
Fresh-Faced Recruit
Joined: Nov 2008
Once that factory is built, Apple can really
get down to some serious business in selling enormous amounts of iPhones and iPads. Apple's cash reserve might get a serious workout. It'll be in the $50 billion range by then.