Foxconn Commits to Original Plans for 10.5G Fab in the US

Earlier this week, Nikkei reported that Foxconn was considering making changes to the initial production capacities of its new $10 billion 10.5G fab, currently being constructed in Wisconsin, US. (Foxconn Reveals Location for New $10 Billion Factory)

According to anonymous sources, the company was believed to be mulling a shift to an 8.5G or 6G line, producing small to medium-sized panels for Apple devices and automotive displays — as opposed to its original plans to manufacture large-sized screens — in order to cut costs and eliminate local supply chain issues.

However, a report from Times Union says Foxconn has gone on the record to rebuff these claims, saying it remains committed to its plans for the new facility and calling the Nikkei report “inaccurate”. However, the company did confirm that plans for the factory’s launch include a “phased approach”, where screens for a variety of applications will be produced.

An official groundbreaking ceremony will take place at the new facility on June 28th, with production scheduled to begin later this year.

Analyst Comment

As I wrote in my Display Daily (Is the Crystal Cycle Broken?), we’re heading for a prolonged period of oversupply so a change wouldn’t be strange, especially as Foxconn has to raise its funds commercially. (BR)