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Foxconn eyes China display plant for $5.7 billion -- report

If Foxconn makes the investment, it would be the largest in the company's history, but so far, talks are only in their preliminary stages.

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Workers at a Foxconn factory assembling Apple products. Apple

Foxconn, the major manufacturer that assembles computing devices for companies like Apple and Microsoft, is considering investing in a new factory, a report claims.

Foxconn and Zhengzhou government officials in north central China are in preliminary talks over the possibility of investing in a major factory that would focus solely on the manufacturing of displays, the Wall Street Journal reported Thursday, citing people who claim to have knowledge of the talks. The total investment could reach as high as $5.7 billion, which would make it the largest in Foxconn's history.

There are several display makers in the world, most notably Samsung. For years, Samsung has produced screens for numerous companies and continues to be one of the largest forces in that market. LG Display, Sharp and Japan Display are also major players in the display-making business and have all provided screens to Apple for its mobile displays.

By getting into the display business, Foxconn would have the opportunity to offer another service to its myriad customers.

According to the Journal's sources, Apple is chief among Foxconn's targets for customers that would use its new plant to produce displays. The company also wants to make screens for other smartphone makers. It's not clear whether Foxconn would stop at mobile or try to build larger displays.

Foxconn did not immediately respond to a request for comment.