Foxconn China plant
Foxconn China plant

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.

Leave a Reply

Your email address will not be published.

You May Also Like
Taiwan masks

Taiwan puts a ban on exporting N95 and surgical masks due to China’s coronavirus

One of the biggest outbreak of a virus in recent history in…
Chinese Navy

Is Chinese Navy Eyeing Taiwan Held Pratas Islands?

A combination of reports from Japan and China over the past week…
French Open Mixed Doubles Winners Chan and Dodig

Taiwanese pair Chan and Dodig defend French Open Mixed Doubles title

At the French Open 2019, Taiwanese tennis pair of veteran Latisha Chan…

How New Delhi’s Eye-For-An-Eye Move Shocked Beijing. 

This is a guest piece by Aditya Singh Gaur The relationship between…