Hon Hai and Innolux to invest $2.8 bn in flat panel plant in Taiwan

Hon Hai Precision Industry Co Ltd, the world's largest contract electronics manufacturer, and the world's third-largest flat-panel maker Innolux Corp plan to invest $2.8 billion in a panel manufacturing plant in Taiwan.

The plant, which will make low-temperature polysilicon panels for use in smartphones, is to be located in the southern port city of Kaohsiung through a new joint venture company and may start production in the second half of 2016.

A Reuters report said it was not clear how the investment would be split, adding, Hon Hai, which already holds 9 per cent in Innolux, is likely to hold a majority stake in the joint-venture.

Founded by Terry Gou in 1974, Hon Hai, also known as Foxconn Technology Group, is the world's largest contract electronics manufacturer having clients like Apple, Dell, Acer, Blackberry, Microsoft, Motorola Mobility, Nintendo, Sony, Toshiba, Acer and others.

The Taipei-based company has around 40 plants around the world, including 13 in China.

It is also the third-largest information technology company by revenue and posted sales of $131.8 billion last year.

Founded in 2003, Innolux became the world's third-largest flat panel display manufacturer when it merged itself with Chi Mei Optoelectronics and Toppoly Optoelectronics in 2010.

Its product lines of TFT LCD panel modules and touch panels include TV panels, desktop monitors, notebook computer panels, small and medium-sized panels, and medical and automotive panels.

The Taiwan-based company employs more than 95,000 people and has production sites around the globe.