Foxconn, one of the most common names thrown around when discussing suppliers, wants more of the Apple pie, and according to a new report the supplier is in preliminary talks to make that a possibility.
According to a report published by the Wall Street Journal on Thursday, October 23, Apple supply chain partner Foxconn is looking to expand its role within the chain, and move up from small parts to more high-end components, like displays. The report states that Foxconn is currently in preliminary talks to open a new, display-focused factory in northern China. The investment, according to the report, could measure in at around $5.7 billion between the supply partner and the government of Zhengzhou.
As it stands now, though, it would appear that both sides of the conversation haven’t quite yet agreed on terms:
“The two sides haven’t yet formulated a concrete investment proposal, they said. If an agreement is reached, it could be Foxconn’s biggest direct investment to date in high-end parts manufacturing.“
While Foxconn’s main ambitions seem geared towards Apple, a major step like this would be for any smartphone manufacturers out there that need displays. There is a growing demand for high-end, energy efficient displays, and Foxconn is looking to get in on that demand while it is still growing.
“Foxconn hopes to capture the growing demand for high-resolution, energy-efficient displays and supply Apple and other smartphone makers in the next few years,” said a person familiar with the situation.“
However, while the preliminary talks are going on between Foxconn and the local government, the report cautions that Apple may not have been approached just yet. Moreover, it is noted that Foxconn’s Chairman, Terry Gou, is known for talking-up the company and its plans well before anything happens, and more often than not nothing comes of it.[via The Wall Street Journal]