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Foxconn and Sharp Team Up To Build $8.8 Billion LCD Plant In China (reuters.com) 66

Foxconn was in the news recently for plans to "automate entire factories" in China, but the electronics manufacturing company has also announced plans with Sharp to build a $8.8 billion (61 million yuan) factory in China to produce liquid-crystal displays (LCDs). Reuters reports: Sakai Display Products Corp's plant will be a so-called Gen-10.5 facility specializing in large-screen LCDs and will be operational by 2019, the company said at a signing event with local officials in Guangzhou on Friday. It said the plant will have capacity equating to 92 billion yuan a year. The heavy investment is aimed at increasing production to meet expected rising demand for large-screen televisions and monitors in Asia. Sakai Display Products Corp's plans for the Guangzhou plant come as Hon Hai seeks to turn the joint venture into a subsidiary, investing a total of 15.1 billion yuan in the company. The venture will also sell 436,000 shares for 17.1 billion yuan to an investment co-owned by Hon Hai Chairman Terry Gou, giving Hon Hai a 53 percent interest in the business and lowering Sharp's stake from to 26 percent from 40 percent.
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Foxconn and Sharp Team Up To Build $8.8 Billion LCD Plant In China

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  • by Anonymous Coward

    cheap labor is no longer the draw.. so that would mean china's lax environmental regulations would be the main reason to build a new plant there instead of..well, pretty much anywhere else there's a market for the product.

    • by Anonymous Coward

      And supply chain. South east Asia is where flat panels are made. So the supply chain is mature competitive and short.

    • by orlanz ( 882574 ) on Saturday December 31, 2016 @08:12AM (#53584117)

      Less regulations are part of it and cheaper labor is still there. Atleast cheaper, more replaceable, and larger pool than Western societies. However, China has been eyeing Africa as the next labor intensive manufacturing hub. So cheap labor hasn't been a big factor for almost a decade.

      The primary pull to manufacture in China is the ability to go from back-office-design to product-at-store quickly and cheaply. China has a massive economies of scale and network effect:
      - Suppliers are many times across town. Worst case, via train from a neighboring country
      - Suppliers are available at all levels of production. From raw materials like iron/wood/coal, simple parts like screws/buttons/wires, infrastructure like trucks/machines/office supplies, and highend parts like sensors/processors/LCDs.
      - There is a well defined transportation and delivery infrastructure for distribution of supplies.
      - Supply chain for export & delivery of a massive volume of goods at a minimal cost
      - Connection to a massive network of global customers
      - A lot of local knowledge in assembling and running the above network
      - With each additional manufacturer and product offering, the above increases in value add

      With all that going for China, I think people are underestimating their opponent and handicapping themselves in competing by passing it all off as "cheap labor" and "lax regulations". Those just end up being icing on the cake.

      • USA is failing big time. Major big time.

        Mass third-world invasion, and this stuff.

        Failing. Betrayal.

  • Not just 16x9 please (Score:4, Interesting)

    by mickwd ( 196449 ) on Saturday December 31, 2016 @07:42AM (#53584071)

    If they're building panels for monitors, and they only produce them in 16x9, then my money is looking for a competitor that produces 16x10, or even 4x3 or 3x2 panels.

    My money, my decision.

    If my money remains unspent, so be it - I'll stick with what I already have, until it finally stops working.

    • Unless Sharp is planning to go into the PC monitor business, 16x9 and wider panels are all that is likely to be produced there. There will still be scaling benefits that make other panels cheaper, since they will still have to buy some of the same materials from the same suppliers as everyone else. I for one am glad to see them make this step because Sharp LCD televisions have always been some of the best. I am super-happy with my 52" AQUOS and I was super-happy with my 32" AQUOS before it. (I wound up trad

    • by rfengr ( 910026 )
      Yeah, I'd love a 16:10 monitor in 4K resolution, but it's unobtainable. 16:9 sucks for anything but TV. I'd like to strangle those who put the computer industry in 16:9.
      • by fisted ( 2295862 )

        Why is the difference between 16:9 and 16:10 such a big deal?

      • Get some black tape and stick a strip across the bottom of your monitor. There now you can stop crying cause you just got a 16x10 monitor.

        You might want to move the icons dock to the side.

      • by tlhIngan ( 30335 )

        Yeah, I'd love a 16:10 monitor in 4K resolution, but it's unobtainable. 16:9 sucks for anything but TV. I'd like to strangle those who put the computer industry in 16:9.

        Strangle the consumer. They chose 16:9 screens for one simple reason - because of TV production, they're super cheap. A 1080P LCD is super cheap because they're used in TVs as well, as well as the video processors and scalers.

        16:10 require their own manufacture of screens and video processor chips that aren't manufactured in huge quantities.

  • Not only is it Chinese junk, they'll be cranking it out even faster.

Nondeterminism means never having to say you are wrong.