TAIPEI (Taiwan News) – The Foxconn Technology Group is looking to sell an unfinished display panel factory in the southern Chinese city of Guangzhou amid the trade war between the United States and China, the Reuters news agency reported Friday (August 2).
The Taiwanese company was in talks with banks to find a buyer for the US$8.8 billion (NT$276 billion) project, as the trade war had driven down demand for its products, two unnamed sources told Reuters.
The sale would not be easy and was not a certainty yet since Foxconn would have to navigate between its extensive interests in China, the customers for its products in the U.S., such as Apple Inc., and the fallout from the trade war.
Responding to the report, the Taiwanese company said its usual policy was not to comment on rumors and speculation. According to the Central News Agency, it has set up a special internal taskforce to monitor trade war developments 24 hours a day.
The “Generation 10.5” new factory in Guangzhou was built to produce large-screen LCDs, for which demand has been lukewarm.
The report came as the U.S. announced a new round of tariffs to take effect on September 1, with US$300 billion worth of Chinese goods facing tariffs of 10 percent.
In Taiwan, it is still not clear whether Foxconn Technology founder Terry Gou (郭台銘) will pursue a presidential bid as an independent following last month’s defeat in the opposition KMT party's primaries. He spent two weeks on holiday in Japan following the vote but has not been seen in public since his return to Taiwan last Wednesday (July 31).