NEWS GENERAL

Ongoing rumours, according to which the Foxconn Group is planning to build a panel plant in Brazil, have been condensed. According to recent market speculation, the CMI-related Tawain company is thinking of a production line for the processing of 8.5G glass substrate. As the Digitimes reports, Foxconn may very well utilize production technology from Sharp.


Foxconn may also buy existing production equipment from Sharp or Chimei Innolux (CMI), according to the reading of industry insiders. Having no experience in the 8.5G production, the company is expected to assign CMI CEO Tuan Hsing-chien to carry out the of investment projects in Brazil.

Previous rumours indicating CMI would plan to relocate one of its 5G or 7.5G lines to Brazil have been invalidated as the company has not yet submitted a respective application to government authorities, experts say.


Due to the scope of the project, they think it unlikely Foxconn will have completed the investment plans in Brazil before the end of 2012. In addition to market conditions the tax situation has to be clarified, the technological know-how to be acquired, as well as capital to be procured.

There are sufficient reasons to invest in Brazil, however - advanced industrialization, political stability, a strong tariff union. Maybe Foxconn also takes into consideration major sporting events like the World Cup 2014 and the Olympic Games 2016, which could let local (TV) panel sales explode.