TRADE TENSIONS: The LCD panel supplier said it might reallocate some US orders for displays used in cars from its Chinese fabs to its Tainan facilities to circumvent US tariffs

Taipei Times
Date: Aug 30, 2018
By: Lisa Wang  /  Staff reporter

Innolux Corp (群創), a LCD panel manufacturing arm of Hon Hai Precision Industry Co (鴻海精密), yesterday said it is seeking outsourcing partners outside China to assemble premium panels used in cars and medical devices to avert potential impact from the growing trade war between the US and China.

The Miaoli County-based company made the remarks as tensions between the world’s two biggest economies has spread to electronic supply chains operating in China, with the US imposing a 25 percent tariff on US$200 billion of Chinese imports.

“The impact will be on high-end displays, such as those used in cars and medical devices,” Innolux chairman Jim Hung (洪進揚) told a media briefing in Taipei.

“We are seeking solutions with our partners like Hon Hai and other companies to outsource assembly [of display modules] in Mexico” or manufacturing sites outside China, he said.
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