Hon Hai Precision Industry, the world's largest contract electronics manufacturer, will partner with Innolux in investing T$86.8 billion ($2.8 billion) in a panel-producing plant in Taiwan. The facility is located in the southern port city of Kaohsiung and which is expected to start production in the second half of 2016, the companies said. The plant will make LTPS (low-temperature polysilicon) panels for use in smartphones.

Hon Hai is already a contract assembly partner for Apple, but has been trying to
trying to diversify by finding new revenue sources. On the other hand, a statement from Innolux said hinted that the Hon Hai group is investing in the LTPS panel-making plant to meet the demand of an "exclusive" customer.