FILE PHOTO: A motorcyclist drives past the logo of Foxconn, the trade name of Hon Hai Precision Industry, in Taipei, Taiwan March 30, 201
TAIPEI (Reuters) – Taiwan's Foxconn explores sales of its China's upcoming $ 8.8 billion factory, People told Reuters, as demand for the product diminishes amid an intensifying US-China trade war.
Foxconn, formally known as the Hon Hai Precision Industry, is in talks to appoint banks to find a buyer for its Liquid Crystal Display LCD factory built in the southern Chinese city of Guangzhou, said two people with direct knowledge of the case.
A sale would come at a delicate time for Foxconn, which has extensive investments in China, a large selection of US customers including Apple Inc, and who must navigate a difficult path amid the protracted trade war between Washington and Beijing. It should mark one of the biggest divestments from China.
Foxconn's discussions are at an initial stage, and a price tag has not yet come up for the so-called Gen-10.5 system that specializes in large-screen LCDs, the sources said, and there was no guarantee to add a sale.
"It's not a simple sale, and it may take some time," said one of the sources, citing lukewarm global demand for large-screen LCDs.
Foxconn said in a written statement to Reuters: "As a matter of corporate policy, Foxconn does not respond to market rumors or speculation." The sources asked for anonymity because the deliberations are confidential.
U.S. President Donald Trump vigorously lifted shares of the blue branded war with China and swung global financial markets by promising Thursday to impose a 10% tariff on $ 300 billion of imports from China from September 1.
Reporting by Yimou Lee; Editing by Anne Marie Roantree and Muralikumar Anantharaman