Responding to Trump calling for Sharp's US panel plant to start this year

On February 8, Kyodo News reported that Sharp's new US LCD panel plant will start construction within the year as soon as possible and it will start production before the end of 2020. Japanese media earlier reported that Sharp also considers inviting other Japanese companies to participate in the investment and expects the entire LCD panel plant to invest US$7 billion. Hon Hai is Sharp's largest shareholder.

Sharp US panel plant starts this year
On January 22nd this year, Hon Hai Chairman Guo Taiming revealed that the construction of a new LCD panel factory in the United States is expected to help achieve 30,000 to 50,000 jobs. He also said that he is also exploring investment in the United States in robots and precision instruments. Gou said that Foxconn has considered this move for several years, but it was not until Foxconn’s partner Sun Yat-sen, the CEO of Japan Softbank Group, met with the newly appointed President of the United States, Trump, in December of last year. Formally took the table to discuss.
In December last year, Sun Zheng and Trump announced that they would invest US$50 billion in the United States. At that time, he had no intention of revealing Foxconn’s investment plan, which amounted to US$7 billion and was not included in the US$50 billion investment. At the time, Foxconn issued a statement saying that the company was discussing the expansion of the United States, but the discussion was still in its infancy and Foxconn did not disclose the details.
As Trump launched the “U.S. Priority” policy after taking office, it invited multinational companies to invest in the United States. For Hon Hai, which has its main production facility in mainland China, this trip to the United States is extremely sensitive. Earlier, Guo Ting-ming said in an interview with reporters that such a U.S. policy may lead to the proliferation of trade protectionism and impede economic development. He also said that the establishment of a panel manufacturing plant in the United States depends on many conditions, such as investment conditions, Foxconn must negotiate with the US state government and the federal government, Foxconn plant construction is carried out in cooperation with Sharp.
However, Gou Ting-ming recently said in the company that the future TVs will be as big as 60 inches. Depicting the strategy to build a large factory that is easy to produce 60-inch panels and to assemble TVs in the vicinity for low-cost delivery. The outside world believes that Hon Hai is also at a key node that requires transformation and increased efficiency. In 2016, the entire Hon Hai revenue experienced the first decline since it was listed in 1991. Hon Hai needs to seek new growth points and improve company efficiency. In 2016, Hon Hai acquired Sharp Corporation and entered the LCD panel, television, refrigerator and other fields. It is considered to be an important incision in the transformation of Hon Hai.

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