<span style='color:red'>Foxconn</span> Faces Chinese Tax Investigation, May Shift More iPhone Orders to Rivals
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Foxconn Faces Chinese Tax Investigation, May Shift More iPhone Orders to Rivals

　　Chinese media reported on the 22nd that China’s regulatory authorities are conducting investigations into Foxconn’s factories in Guangdong, Jiangsu, Henan, and Hubei. This comes at a time when Apple’s iPhone 15 series is in full production and seeing high shipment volumes. The investigation may potentially impact the production capacity of the iPhone 15. Market rumors suggest that Apple is considering gradually shifting orders to competitors, which could benefit companies like Luxshare Precision and Pegatron.　　According to Chinese Taiwan’s Commercial Times, in response to the recent tax inspection, Foxconn emphasized on the 22nd that it would actively cooperate with relevant agencies in their operations. Major suppliers for iPhone 15 lenses, Largan Precision and Genius Electronic Optical, declined to comment on the situation with individual clients but emphasized that their current shipments are not affected.　　Influenced by strong competition from Chinese smartphones, including Huawei, and concerns about overheating issues, the appeal of the iPhone 15 has waned, and the highly anticipated iPhone 15 Pro Max’s popularity has declined. In the Asian market, waiting times for the sought-after titanium alloy casing iPhone have been substantially reduced. Shipping times have decreased to approximately two weeks, while in-store pickup can be as fast as three days. Signs of cooling demand are also appearing in Europe and the United States.　　Tech industry insiders note that even though demand for the iPhone 15 has decreased, Apple is still considering expanding its supply chain to be prepared for unforeseen circumstances.　　In addition, samples of iPhone 16 components and designs are in the sampling stage, with plans to finalize them by January of next year. The recent tax inspection controversy involving Foxconn, combined with the fact that its competitor, Luxshare, has obtained the assembly NPI (New Product Introduction) for the 2024 iPhone 16 Pro Max, further strengthens Luxshare’s presence in the iPhone business. Its share of manufacturing is expected to increase significantly next year.　　Furthermore, Luxshare has already become the primary assembly factory for Apple Watch and AirPods, and in 2020, it acquired two iPhone production lines from Wistron. Luxshare is also a major producer for Vision Pro, representing Apple’s accelerated localization efforts and a move away from its dependency on Foxconn.
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Release time：2023-10-23 14:23 reading：1872 Continue reading>>
<span style='color:red'>Foxconn</span> May Use Sharp to Roll out First Chip Fab
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Foxconn May Use Sharp to Roll out First Chip Fab

Foxconn, the main assembler of Apple’s iPhones and iPads, is expected to flex its majority stake in Japan’s Sharp to build its first chip fab, according to analysts.The world’s largest electronics contract manufacturer, also known as Hon Hai Precision, aims to launch a $9 billion fab near southern China’s Zhuhai city, Nikkei reported in late December, following earlier media reports. The total amount of the investment in the project could add up to around 60 billion yuan, or $9 billion, with most of the investment coming from the Zhuhai government. Foxconn did not answer queries from EE Times.Initially, Foxconn is expected to draw on Sharp, which has experience making CCD/CMOS sensors, LCD drivers, game console CPUs and other logic. Japan’s leading LCD TV maker has operated an 8-inch fab in Fukuyama at the 0.13μm process node. Foxconn’s 2016 takeover of Sharp provides the ability to design and produce semiconductors for the first time in Foxconn’s history as it shifts from electronics assembly to higher margin chip production.“One of the Hon Hai group’s goals when acquiring Sharp was to gain semiconductor technology,” Tokyo-based Mizuho Securities analyst Yasuo Nakane told EE Times. “If the overall investment totaled ¥1 trillion ($9 billion), we would expect Hon Hai group and Sharp to pay ¥200 billion and ¥100 billion, respectively.”The plan comes as Foxconn is building a 10.5G LCD plant (90,000/month capacity for a-SI substrates) in the southern Chinese city of Guangzhou, with installation of equipment starting from early 2019 and production starting in the fourth quarter. Foxconn will shoulder about 30% of that investment, according to Nakane. The company will probably use a similar arrangement with China’s central government for the investment in the China fab, he said.Unlike LCD operations, in which local governments are the main investors, chip projects are financed partly by China’s central government, which sees semiconductors as a more important field, Nakane said.After decades of effort, China, with the world’s largest market for semiconductors, still depends on imports for most of its supply. Beijing’s more recent Made in China 2025 industrial policy, aimed at making the nation dominant in high-technology, faces opposition from the U.S. on issues of intellectual property theft.Possible Downgrade of Wisconsin ProjectThe plan to build the fab in China may also signal a downgrading in Foxconn’s project to produce LCDs in the U.S. state of Wisconsin, according to Nakane.“For Sharp, ¥100 billion would be a major investment, but the company looks less likely to invest in a 6G LCD plant Wisconsin (60,000/month capacity for IGZO ‘oxide’ substrates), so we can envision it diverting such funds to semiconductor facilities,” he said.The main hurdle for the China fab project is likely to focus on securing intellectual property and engineers.“If Sharp were to invest in a 12-inch wafer plant in China, we doubt it would begin operations using processes several generations old, and we think it currently lacks enough engineers for the task,” Nakane said.AppleFoxconn may use the project to reduce its reliance on Apple, which accounts for half of its annual revenue of NT$4.7 trillion ($152.65 billion), as the global smartphone market slows, the Nikkei report said.The new fab will initially make chips for ultra high-definition 8K televisions and camera image sensors, as well as various sensors for industrial use and connected devices, the report said. The aim is eventually to expand the 12-inch chip facility in Zhuhai to make more advanced chips for robotics and autonomous vehicles, according to Nikkei.Step by StepFoxconn has made gradual steps into the semiconductor industry in recent years, mainly in the backend assembly and test segment.In 2003, the company acquired the wireless IC module division of Ambit, which was part of the Acer group. The Ambit unit, renamed as Shunsin, now focuses on system in packaging for smartphone power amplifier modules with Apple and Samsung as the two major customers.Over the long term, Foxconn may seek tie-ups with second- or lower-tier foundries as part of the chip fab plan, according to Nakane. One possibility would be Taiwan’s UMC Group, but such an alliance seems unlikely anytime soon, as the U.S. government has charged Taiwan’s second-largest foundry with illegally obtaining DRAM intellectual property, he said. Sharp also faces intellectual property-related constraints as its own library is limited to finished-product knowhow, he added.Foxconn may be swimming upstream with the fab project. Global chip equipment spending in 2019 is projected to drop 8%, a sharp reversal from the previously forecast increase of 7%, according to the latest edition of the World Fab Forecast Report published by SEMI.Plunging memory prices and a sudden shift in companies’ strategies in response to trade tensions are driving rapid drops in capital expenditures, especially among leading-edge memory manufacturers, fabs in China and projects for mature nodes such as 28nm, according to SEMI. Industry sectors expecting record-breaking growth in 2019, such as memory and China, are now leading the decline, the report said.
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Release time：2019-01-02 00:00 reading：1352 Continue reading>>
<span style='color:red'>Foxconn</span> Reportedly Readies Chip Fab in China
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Foxconn Reportedly Readies Chip Fab in China

Taiwan's Hon Hai Precision is set to break ground in 2020 on a $9 billion 300mm chip fab in the city of Zhuhai in southern China, according to a report by the Nikkei news service.Hon Hai, which operates under the trade name Foxconn, has been mulling plans since early this year to build and operate its own semiconductor fab to make chips for the products it builds for other firms on a contract manufacturing basis. In August, the Wall Street Journal reported that Foxconn inked a deal with Zhuhai's government to locate its first chip fab there.Last week, Nikkei reported that Foxconn plans to build chipsets for ultra high-definition televisions and CMOS image sensors for phones in Zhuhai, with hopes to eventually expand into production of higher value chips for robotics and autonomous vehicles. Nikkei reported that Foxconn will also enter the foundry market, offering to build chips designed by other semiconductor companies.A majority of the cost of the fab will be subsidized by the city of Zhuhai, according to the Nikkei report.
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Release time：2018-12-28 00:00 reading：1368 Continue reading>>
<span style='color:red'>Foxconn</span> Reportedly Plans to Slash Billions in Costs
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Foxconn Reportedly Plans to Slash Billions in Costs

Contract manufacturing giant Hon Hai Precision — commonly known under the trade name Foxconn — plans to cut nearly $3  billion in costs in 2019 as it grapples with increased competition and iPhone production cuts by Apple, according to the Bloomberg news service.The Bloomberg report, citing an internal company document, said Foxconn has spent about $6.7 billion over the past 12 months. The company plans to cut its iPhone business by $865 million next year and layoff 10% of non-technical staff, according to the report.The revelation comes at a time of rising concern about slowing demand for the latest iPhones. Over the past two weeks, several known suppliers of components found in the iPhone have cut revenue estimates, citing uncertainty over iPhone demand.Apple shipped 46.89 million iPhones in its fiscal fourth quarter, which closed in September, roughly flat with the same period a year earlier.Foxconn is headquartered in Taiwan but has a large manufacturing presence in mainland China and elsewhere. In addition to iPhones, Foxconn builds other products for Apple as well as a laptop computers and a variety of other devices for tech OEMs.   
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Release time：2018-11-23 00:00 reading：1220 Continue reading>>
Stiff Competition in TV ODM Market; <span style='color:red'>Foxconn</span> Outperforms TPV to Top the Shipment Ranking
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Stiff Competition in TV ODM Market; Foxconn Outperforms TPV to Top the Shipment Ranking

　　WitsView, a division of TrendForce, reports that Foxconn is expected to take the first place in the global shipment ranking of LCD TV ODMs for 2018, for the brand benefitted from the prosperous business of Sharp, a subsidiary of Foxconn, as well as stable orders from Sony and VIZIO. TPV slid to the second place, with TCL and BOEVT following the third and fourth.　　“All the four major TV ODMs have their in-house panel supply networks, enabling them to offer more flexible prices to clients and to secure orders amid the tight supply of panels”, says Jeff Yang, the research manager of WitsView. The companies have also made adjustments to their business modes due to the slowdown in the global TV market, allocating increasing capacity to own-branded TVs to boost the shipments.　　Major TV ODMs put increasing focus on own-branded products to boost the shipments　　After a significant shipment increase in 2017, the Sharp-branded TVs of Foxconn are expected to see only marginal growth this year. This is because the falling panel prices in 1H18 offset Foxconn’s advantages of in-house panel supply, and Xiaomi is emerging as a key competitor with surging demand for its Mi TV at the same time. Together with stable orders from Sony and VIZIO, Foxconn’s global TV shipments for 2018 has a great chance to total 16.5 million units, outperforming TPV, the previous leader in the TV ODM market.　　TPV topped the TV ODM ranking by shipments in 2017, but is influenced by the financial issues of some Internet TV brands in China and VIZIO’s transferring orders to other ODMs this year. Although TPV has been expanding the shipments of its own-branded Philips and AOC TVs, the increased sales may not offset the decline in its annual global shipments of TV sets. Therefore, WitsView anticipates TPV to slide to the second in the ranking, with an estimated TV shipment of 15.3 million units.　　The market to see limited TV ODM orders; secured panel resources will be the key to success amid the intensified competition　　TCL’s TV shipments for 2018 is expected to total 10.4 million units, ranking the third, as it benefited from the surging demand for Mi TV in China and Southeast Asia. In comparison, BOEVT, whose profits are significantly influenced by the drop in panel prices in the first half of this year, would record a shipment of 9.5 million units, taking the fourth place. On the client side, BOEVT has to give up some of its low-priced TV ODM orders, and focuses on developing major clients like Samsung and LGE.　　WitsView expects intensified competition in the TV ODM market in the future, as panel makers like HKC and INX have been actively integrating downstream TV ODM services, while Chinese companies like KTC and AMTC continue to feature their cost advantages.　　Overall speaking, the integration of own-branded products to the original ODM business models appears to be a double-edged sword for TV ODMs. With own-branded TVs, the companies are able to keep a certain level of availability rates during the fluctuations of orders. However, the business of own-branded TVs may be unfavorable for ODMs when they compete for orders from international brands like Samsung and LGE, who may worry about the capacity allocation of the ODMs and may consider the own-branded TVs as their potential competitors.　　WitsView notes that the two business models will co-exist in the market in the future, with their own pros and cons. For TV ODMs, their ultimate strategy will be avoiding the market competition between their own-branded TVs and TVs of their clients, seeking more reliable panel supply, and increasing their cost advantages. Only in this way can they secure the orders and meet the demand from clients.
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Release time：2018-09-20 00:00 reading：994 Continue reading>>
<span style='color:red'>Foxconn</span> profits hit by rising operating costs
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Foxconn profits hit by rising operating costs

The world's largest contract manufacturer, Foxconn, saw second quarter net profit come in well below expectations, due to a rise in component costs and unsold inventory.Foxconn reported net profit of T$17.49billion (£444.4million), 20 percent short of analyst expectations and slightly below the year-earlier results.According to analysts the weak results reflected concerns about a loss of momentum in global smartphone sales. Foxconn unit FIH Mobile saw a wider first-half loss - it reported last week - and said that it faced a high risk of saturation in the smartphone market.Despite trying to diversify into other areas, such as displays and autonomous vehicle start-ups, most of the company's profits still come from manufacturing phones for the likes of Apple and other leading mobile phone companies.Rising component costs and investment in plant saw operating costs jump by 18 percent.
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Release time：2018-08-15 00:00 reading：1114 Continue reading>>
<span style='color:red'>Foxconn</span> Invests $10B in U.S. LCDs
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Foxconn Invests $10B in U.S. LCDs

　　Hon Hai Precision, the parent company of Foxconn, will spend $10 billion to build in Kenosha, Wisconsin a 10.5-generation LCD plant for 8K displays. The deal brokered by the Trump Administration includes $3 billion in tax breaks to create at least 3,000 Foxconn jobs in the U.S.　　“TV was invented in America, but it does not have a single fab to produce a single 8K system--we are going to change that,” said Foxconn chairman and founder in a White House event. “We are committed to build the most advanced 8K ecosystem in America — the most advanced in the world,” Gou said.　　The deal includes a 20 million square foot Foxconn campus that could ultimately create up to 13,000 Foxconn and 22,000 indirect jobs. The Foxconn jobs will have an average annual salary of $53,000 plus benefits, said Wisconsin Governor Scott Walker.　　“This is a great day for anyone who believes in the label ‘Made in the USA,’” said President Trump.　　Separately, President Trump told the Wall Street Journal that Apple chief executive Tim Cook promised to build three manufacturing plants in the U.S. The Foxconn LCD fab is not related to Apple, but is focused on LCDs for large-screen TVs.　　Analysts described the Foxconn plan as ambitious given the supply chain required to make large LCDs is almost entirely in Korea and China. However, North America is the largest market for large-screen TVs of 55-inches and above, said Ken Werner, a veteran display analyst with Nutmeg Consultants (Norwalk, Conn.).　　Since it bought Sharp a year ago for $3.5 billion, Foxconn has been trying to revive Sharp’s branded TV business, which the Japanese company sold to China’s HiSense in 2015. HiSense and other TV makers in China, such as TCL and Skyworth, have leapfrogged Sharp and many other TV giants in Japan. Sharp once dominated the flat-panel business but now only Sony remains among top players from Japan.　　Large screen displays and to a lesser extent the TVs they go into are cyclical and highly automated businesses typically based on large volumes and thin profits, said Werner. While LCD and TV makers have reaped good profits in the last two years, the business is known for quick up and down swings, he said.
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Release time：2017-07-27 00:00 reading：995 Continue reading>>
Apple, Amazon to Join <span style='color:red'>Foxconn</span>'s Toshiba Bid
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Apple, Amazon to Join Foxconn's Toshiba Bid

　　Apple and Amazon will pony up to pay a portion of contract manufacturer Foxconn's bid to acquire Toshiba's semiconductor business as the consumer electronics powerhouses move to secure a steady supply of NAND flash memory, Foxconn's cheif executive told the Nikkei news service.　　Apple and Amazon's names have surfaced before in connection with a possible bid to buy the chip unit, which Toshiba is selling to help offset massive losses incurred by its nuclear power business in the U.S. In March, Japan's Yomiuri Shimbun reported that Apple, Google and Amazon all three their hats in the ring as potential suitors.　　Apple and Amazon are dependent on NAND flash memory for their consumer electronics offerings, including iPhone, iPad and the Alexa-powered Amazon Echo. Many of these products are built by Foxconn. Last week, market research firm DRAMeXchange reported that contract prices for NAND rose 20 to 25 percent in the first quarter, stabilizing the price of NAND in what is traditionally a slower time of year for memory chip sales.　　Foxconn reportedly bid more than $27 billion, more than any other bidder is thought to have offered, to acquire the semiconductor business of Toshiba, which is second in NAND sales worldwide behind Samsung. However, Foxconn, which is based in Taiwan and has a large number of manufacturing facilities in China, is considered a longshot to land the asset because the Japanese government is wary of giving China access to Toshiba's NAND technology.　　Speculation has been that the participation of Apple and Amazon could give weight and credibility to the Foxconn bid, perhaps enough to soften concerns about China.　　Other bids that are reportedly still being considered include those made by Broadcom Corp. with private private equity investor Silver Lake Partners and another by South Korea's SK Hynix. A joint bid by private equity firm Kohlberg Kravis Roberts (KKR) and Innovation Network Corp. of Japan (INCJ) is also among those still being scrutinized by Toshiba and could have the inside track because of its participation by a Japanese public-private partnership.　　Western Digital Corp., Toshiba's partner in NAND technology development and manufacturing, has also decided to seek a smaller stake in Toshiba's chip business than originally planned, according to a report Monday (June 5) by the Japan Times. WD originally wanted to acquire a majority of the unit but has not decided to seek a 20 percent stake in an effort to reach a compromise with Toshiba, according to the report.　　WD last month requested an arbitration through the International Chamber of Commerce over Toshiba's plans to sell the chip business, saying Toshiba was contractually bound to seek WD's approval and give WD exclusive rights to negotiate the purchase of the business.
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Release time：2017-06-06 00:00 reading：1073 Continue reading>>

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