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China / Business

Foxconn to build world-giant plant

By Qiu Quanlin in Guangzhou (China Daily) Updated: 2017-03-02 07:17

Subsidiary Sakai Display to invest $8.86b in facility

Sakai Display Products Corp, a subsidiary of the world's largest electronics contractor Foxconn Technology Group, began construction of the world's largest 8k-resolution panel factory in Guangzhou, capital of Guangdong province, on Wednesday.

The factory, with an investment of 61 billion yuan ($8.86 billion), will mainly produce the 10.5 generation panel, substrate glass and related product lines, and serve as a major supplier for Japanese TV set maker Sharp Corp, according to the company.

Earlier, SDP completed registration of a wholly owned subsidiary in Guangzhou, the SAKAI Sio International Guangzhou Co Ltd, which will be responsible for construction and operation of the panel factory.

The panel facility, following Foxconn's opening of its first processing line in Shenzhen in 1988, has become the largest overseas investment project in Guangzhou since China embarked on reform and its opening up in 1978.

"It will not only be a panel processing factory, but a concept of building an ecological town featuring high-end technology in the city of Guangzhou," said Terry Gou, chief executive officer and chairman of Foxconn Technology Group.

Gou made the remarks during an opening ceremony on Wednesday in Zengcheng, a suburban district of Guangzhou, where the project is located.

According to Gou, the panel factory had also helped encourage a number of major electronics suppliers to move their business to Zengcheng.

"The 8k-resolution technology will be widely used in TV displays and medical treatment, traffic control and smart homes, helping to build a healthier living environment featured by high-end technologies," said Gou.

He refused to respond to reports of Foxconn planning to open another large LCD panel factory in the US state of Pennsylvania, saying the issue remains under discussion.

"We are focusing on expansion of panel productions in this Guangzhou facility to meet the growing demand of high-end panels in the TV set market," said Gou.

According to Gou, construction of the factory will be completed within two years, helping it become the world's largest and most advanced 8K processing facility.

The facility will mainly produce 65-inch and 75-inch panels, helping to create more than 15,000 jobs and generate 92 billion yuan in production value each year.

Lin Jiang, a professor with the Sun Yat-sen University, said Foxconn's new operations will be of great importance to help attract more IT businesses to the Pearl River Delta region.

qiuquanlin@chinadaily.com.cn

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