Foxconn investing $2.6B into new display factory that will exclusively supply Apple
Foxconn's Innolux will build a new $2.6 billion sixth-generation plant in Southern Taiwan to supply displays exclusively to Apple, after the iPhone maker made an "urgent" request, it was announced on Thursday.
The new plant from Foxconn-owned Innolux Corp. will begin mass production of panels exclusively for Apple by the end of 2015, according to a representative for the company who spoke with Bloomberg. Equipment installation is reportedly set to begin next month after Innolux received "an urgent request for exclusive capacity," the report said.
Foxconn Technology Group expects to spend $2.6 billion over the next two years on the factory, which will employ some 2,300 people at the Kaohsiung Science Park campus in Southern Taiwan.
Little else about the arrangement, including display types or even what devices Foxconn might be building screens for, is known. But in recent years, reports have claimed that Innolux Corp. has been gradually squeezing out longtime LCD supplier Samsung from Apple's supply chain.
Earlier this year, it was said that Apple tapped Innolux to supply the 4.7-inch Retina displays used in Apple's current iPhone 6. Other rumored LCD suppliers are LG Display and Japan Display.
Innolux is Taiwan's largest maker of LCD screens, and Apple uses LCD technology on most of its products, including the iPhone, iPad, its MacBooks and the iMac.
In a new direction, the company will use power sipping AMOLED technology for its upcoming Apple Watch, but those tiny wrist-worn displays are expected to cost considerably more per pixel than the LCD screens used on other Apple devices.
The new plant from Foxconn-owned Innolux Corp. will begin mass production of panels exclusively for Apple by the end of 2015, according to a representative for the company who spoke with Bloomberg. Equipment installation is reportedly set to begin next month after Innolux received "an urgent request for exclusive capacity," the report said.
Foxconn Technology Group expects to spend $2.6 billion over the next two years on the factory, which will employ some 2,300 people at the Kaohsiung Science Park campus in Southern Taiwan.
Little else about the arrangement, including display types or even what devices Foxconn might be building screens for, is known. But in recent years, reports have claimed that Innolux Corp. has been gradually squeezing out longtime LCD supplier Samsung from Apple's supply chain.
Earlier this year, it was said that Apple tapped Innolux to supply the 4.7-inch Retina displays used in Apple's current iPhone 6. Other rumored LCD suppliers are LG Display and Japan Display.
Innolux is Taiwan's largest maker of LCD screens, and Apple uses LCD technology on most of its products, including the iPhone, iPad, its MacBooks and the iMac.
In a new direction, the company will use power sipping AMOLED technology for its upcoming Apple Watch, but those tiny wrist-worn displays are expected to cost considerably more per pixel than the LCD screens used on other Apple devices.
Comments
Here's the thing. If it really is an 'urgent' request, that tells you Apple's projections for iPhone demand show that it won't be decreasing any time soon. Obviously demand may ease a bit for the Plus, where they can get it in stock, but you don't request a 2.6 billion dollar plant to help cure a temporary supply issue.
Shareholders, take note.
I can hardly watch AAPL these days, it's too damned exciting ... every $10 or so I see a six digit gain overall. This from quite a modest investment back when our broker told us we were nuts and demanded we signed waiver exonerating him for going against his advice.
I hope you fired that broker.
Congratulations on owning 10,000 shares of AAPL. You must represent the "1%" of our little commentator community.
I can hardly watch AAPL these days, it's too damned exciting ... every $10 or so I see a six digit gain overall. This from quite a modest investment back when our broker told us we were nuts and demanded we signed waiver exonerating him for going against his advice.
I wish I owned that many shares. I bought what I could at the split...which wasn't much lol. Still, I'm well in the black.
And yes, it definitely makes their success that much more exciting.
On the other hand Tim Cook would advise against making investment decisions based on what you think you know about Apple's supply chain. In theory this could be a result of someone else's screw up rather than unexpected demand. (But is agree with you that it's probably a positive sign.)
True, and I'm certainly not giving investment advice, just calling attention to it.
My mother was strongly told to diversify in the $100-150 range(pre split). She diversified by buying Apple in ALL of her accounts.
Here's the thing. If it really is an 'urgent' request, that tells you Apple's projections for iPhone demand show that it won't be decreasing any time soon. Obviously demand may ease a bit for the Plus, where they can get it in stock, but you don't request a 2.6 billion dollar plant to help cure a temporary supply issue.
Shareholders, take note.
would be nice if this forecasted demand is for a new product. Maybe the ever elusive, full-sized Apple TV, or something home or auto related.
My mother was strongly told to diversify in the $100-150 range(pre split). She diversified by buying Apple in ALL of her accounts.
I occasionally get calls about "excessive concentration" in my IRA. Those $24 (pre-split) shares are doing nicely.
People are wetting themselves over Apple stock. It doesn't operate in a vacuum.
A black swan event could happen today or next month or in 3 years.
Hopefully people are diversified with a risk they are willing to take.
Your stocks are worth nothing until you sell!
I'm in total market vanguard index funds and bonds and have a bunch in a stable fund to spend when the market corrects.
To each his or her own. Good luck.
In 1854, Commodore Matthew Perry, who had the year before forced the Tokugawa Shogunate in Japan to sign a treaty with the US, dropped anchor of Formosa, now Taiwan, for 10 days. He recommended that the island be occupied as it had reserves of coal that would be useful for the new steam powered warships the US navy was using. President Franklin Pierce declined, demurring at the cost. Imagine the outcome of a different response in DC.
They want to sell you mutual funds so They make more money. No thank you.
Sometimes I just say "no". Other times I play them on a bit and ask for their recommendations for stocks that will perform as well, or close. "How should I invest the funds I get from selling the Apple shares?"
Lots of mumble-mumble at that point and they soon find a way to end the call.
Almost, which is why I said $10 or so, ... but we have all dividends ploughed back in automatically for more shares so we inch closer.
I am not so down on the broker to be honest. Back them he would have been derelict in his duty to allow someone to move so much of their holdings from safe funds into high risk without some serious warnings. It was a heck of a gamble but I weighed it very carefully and even though I never gamble, did!
In fact when the market went down for much of the time Apple went up! It is quite often counter to the market, so much so i often wonder if it is seen as an alternative to bonds and gold by some!
Diversification for diversification's sake is no way to protect a portfolio if the other stocks are candidates to take big price hits in the next downturn.
I can hardly watch AAPL these days, it's too damned exciting ... every $10 or so I see a six digit gain overall. This from quite a modest investment back when our broker told us we were nuts and demanded we signed waiver exonerating him for going against his advice.
Congratulations on owning 10,000 shares of AAPL. You must represent the "1%" of our little commentator community.
As late as June 2002, AAPL was an adjusted $1/share. Now it's sitting around $114. 10K shares were 1400+ shares prior to last split, 700 before the split in 2005, and 350 before the split in 2000. Starting with 350 shares back in the late 20th century wouldn't have been such a big deal. They didn't cost $465 (my entry point). digitalclips just acted like a true investor, investing for the long run. Yes, this make digitalclips the 1% (or less) of of current gablers/investors but I'm sure there are plenty of people who have held onto their AAPL shares for 20 years or so. Two of my brothers have owned AAPL for at least that long.
2:1 split June 2000, 2:1 split Feb 2005, 7:1 split June 2014.
My financial person also said to sell before it hit $700 but I told him I was going to hang on. I just wish I put more of my retirement money into AAPL but then it would have dropped.That's my luck. So far I've made 70% in a little over 15 months. I'll take that any day.