Foxconn’s newest China factory faces uncertainty as US trade war and economic slowdown take a toll
- Guangzhou facility was supposed to begin operations next month, but now everyone involved is ‘a bit embarrassed’ over its uncertain future
- A firm linked to Foxconn founder Terry Gou has reportedly been trying to sell the plant, which was supposed to boost China’s role in the global value chain
When ground was broken in March 2017 for a new US$9 billion factory owned by a subsidiary of Foxconn Group, the event was witnessed by then Guangdong party secretary Hu Chunhua and Terry Gou Tai-ming, the Taiwanese billionaire who created Foxconn, the world’s largest assembler of Apple’s iPhones and tablets.
The plant was hailed by local media as an example of Chinese efficiency in promoting investments that matter for the future and the country’s key role in the global value chain.
The Southern Daily, an official Guangdong newspaper, reported that the project would be Guangzhou’s contribution to the “Made in China 2025” strategy and would help the city, and the province, move up the value chain.
Now, after two years of construction in the Guangzhou suburb, the plant’s main structure is completed, and on a recent visit trucks were seen going in and out of a gated compound.
Workers at the site said production lines were being shipped in and installed so the factory could start producing liquefied crystal displays with 8K resolution, which makes screens clearer.
