Taiwan’s Foxconn is looking to sell its $8.8 Billion China plant due to trade wars
The trade wars between the nd China continue to worsen by each passing day. Earlier this week, US President Trump announced a new “small” tariff on products imported into the US from China. This move is seen as a way to discourage companies like Apple from importing products into the US from China. Now, we have seen that trade ties between China and Taiwan are at an all-time low too.
Reuters now reports a major fallout due to the worsening trade ties of countries with China. According to Reuters’ sources, Taiwan’s Foxconn is looking to make the sale of its newly opened manufacturing plant which was set up for $8.8 Billion. At the moment, Foxconn is said to be “exploring” sale of this plant. This means that the sale might happen and it might not happen as well.
This is also because the demand for products from China is decreasing due to a -China trade war. Also, Apple is told by Foxconn that they are ready to move the production of iPhones from China to Taiwan if needed. This is after assurance that Foxconn’s Taiwan plant is capable of handling the iPhone demand from the US.
Now, this plant is manufacturing Liquid Crystal Displays and Foxconn is looking to assign banks to find them a buyer for this plant. This move can also be because the demand for LCD panels is decreasing every so largely in the market. It is reported that Apple is also moving away from LCD panels while the only ones to use LCD panels are PC Laptop manufacturers.
Therefore, the demand for LCD panels would not be as much as it was few years ago. Reuters quotes a person familiar with the matter saying that “It’s not an easy sale and it could take a while,” If Foxconn decided to sell its China plant, it will be its biggest disinvestment till date from China.