Foxconn has announced plans to build a solar power network in China encompassing new factories and plants.
According to a statement released by the Chinese Ministry of Commerce, the Taiwanese electronics manufacturer is investing in one research center, five solar-power components factories, and 20 solar-power generating plants in the southern province of Guangxi.
Foxconn since 2012 has been shifting its focus toward solar power, pouring nearly 100 billion yuan (US$16 million) in other provinces in China, where the government has provided solar manufacturers with heavy subsidies.
In the face of competition, increasing labor cost and pressure from business customers, Foxconn's cellphone subsidiary company had failed to meet market expectation and reported an of US$316 million in its fiscal 2012. Hence, to some, the moves could be seen as part of a strategic plan.
Despite last week CIConsulting company. Foxconn should be able to tap the expanding Chinese market by utilizing its financing power and management expertise, Shen said., China's biggest solar panel manufacturer, the outlook for the domestic market remains encouraging, according to Shen Hongwen, an analyst from
However, the biggest challenge facing the report by news site MyDrivers.com.is the gap between the high market demand and the low technological level of manufacturing. As part of the company's maneuver in the solar industry, Foxconn's investment in Guangxi should be seen as a decade-long strategic plan, said Shao Zhicheng, director of Jin Yin Dao research institute, in a