Foxconn has reportedly agreed to spend £1.6 billion on a new facility intended solely for crafting displays for Apple’s products.
For as long as we can remember, Apple has been plagued with supply and demand issues, with new devices selling out within days of release, followed by weeks of waiting for new stock. Therefore it’s no great surprise that Foxconn, the Chinese manufacturing company which assembles Apple products, has announced that it plans to spend a cool NT$80 billion (£1.6 billion) on a factory in Taiwan, most likely dedicated to the production of its Innolux displays for the Cupertino-based tech giant.
Sophia Chang, a PR for the Innolux brand, has confirmed the project, but purposely declined to comment on the rumours that the facility would be used for Apple production.
Foxconn already has several plants which are used for the sole production of Apple devices, but this will be the first time that a factory has been built for the manufacture of components for their hardware.
According to sources, this follows an ‘urgent request’ by Apple, whose sales have been halted of late due to problems with supply, and although Foxconn hasn’t confirmed whether the new factory is at Apple’s behest, we can’t think who else would have the clout to compel the world’s largest electronics manufacturer to make such a bold move.
Equipment installation is expected to begin at the new plant before the end of the year, and mass production is planned to start before the end of 2015, so it may well be the iPhone 7 or next generation iPad which is the first device to benefit from the increased manufacturing power.