Two sources familiar with the situation pointed out that Taiwan Hon Hai (2317.TW) founder Guo Taiming, a joint venture with Sharp (6753.T) of Japan, SDP and Guangzhou Municipal Government's 10.5 generation panel factory in Zengcheng, Guangzhou, are seeking buyers.
Sources said that the overcapacity of panel industry in recent years, coupled with the continuous imposition of export tariffs on Chinese goods by the United States since last year, was the reason why Hon Hai reconsidered not manufacturing panels in China.
Hon Hai is in contact with the investment bank about the sale of the panel factory, but no buyer has been identified.
The total investment of the 10.5 generation panel plant in Zengcheng, Guangzhou, China is 61 billion yuan. The project was announced in 2016 and is planned to produce by early October this year. According to previous media reports, this is the largest single investment project in Guangzhou. If the buyer is found smoothly this time, it will be Hon Hai's first large-scale investment withdrawal from China.
Sources said that since Guangzhou panel factory has not yet mass production, the main investment amount is in machinery and equipment, so it is difficult to talk about a good price.
"The problem is that we can't find a buyer at the moment... It's not that easy, and what else to talk about... Machinery and equipment is not that easy to find a buyer." Another source said.
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