Foxconn in early 2011 decided to invest US$25 million to set up touch screen production lines for tablet PCs at leased factory buildings in Dongguan, southern China, but has suspended the project. Foxconn has not explained the suspension and also did not make any response when asked for comment.

Foxconn originally planned to rent 100,000 square meters of factory space in Dongguan to produce small-size touch screens for tablet PCs and monitors. The company set aside US$10 million as provisional capital and US$25 million to fund for the first-phase investment. The new plants were originally expected to provide about 3,000 job opportunities and contribute an annual production value of US$100 million.

However, Foxconn has not yet made any movement about the factory building despite the fact it was scheduled to begin as early as April. Rumors that Foxconn had already decided to put off the investments started circulating in force in July with the related government unit confirmation that the investments had been recently suspended.

Market watchers believe the reason behind Foxconn suspending its investments in Dongguan is because the company's aggressive migration into inland China has achieved great effects and therefore the company decided to halt its Dongguan investments to avoid from creating excess capacity.

However, the market watchers believe the decision will not affect Foxconn's other migration and expansion plans

By: DocMemory
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