The Korea Display Industry Association (KDIA) is actively discussing with suppliers on taking a collective stand against Foxconn’s delay in payment for the equipment at its Gen-10.5 LCD production lines in Guangzhou, according to industry sources on Nov. 6.
“Unlike with Chinese display industry players, we haven’t been in close contact with companies in Taiwan, but we are now on track to finding the right channels of communication,” said Seo Won-hyung, the KDIA Chair.
A total of seven equipment suppliers took part in the KDIA meeting in October. Among them, five of the listed firms were SFA, Top Engineering, DMS, DIT and Rorze Systems. The two unlisted firms were KC Innovation and Nano Protech. Zeus is another company supplying equipment to the Gen-10.5 lines in Guangzhou, although it didn’t attend.
Foxconn has been unable to pay off these suppliers due to a delay in its schedule to begin mass production from the LCD lines. It is now expected to postpone the plans till April 2020.
Last month, the Taiwan Electronic Equipment Industry Association said it was planning to hold a press conference on the issue, confirming that Foxconn owes up to 10 billion Taiwanese dollars (380 billion won) in delayed payments.
However, the conference was called off after Foxconn said it would individually contact the suppliers.
Adding to the confusion of local suppliers, on Oct. 7, SDP, the Japanese affiliate of Foxconn, said that the payments would soon be made to the Taiwanese firms also awaiting payment. It failed to mention the South Korean suppliers.
SDP is the largest shareholder of Sakai SIO, the corporation operating the LCD lines at Foxconn’s Gen-10.5 LCD lines. Sakai SIO is currently demanding both Taiwanese and South Korean suppliers to cut the equipment prices of the delayed payment.
“We have reason to believe that Sakai SIO will invest in at least the first phase of the project,” said one representative of the local equipment industry.
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