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Trade war

Foxconn's $20bn projects in US and China hit by growth fears

Tech group weighs whether demand justifies extra capacity amid trade war

Foxconn's headquarters in Taiwan. The company's decision to delay work on factory-building projects in the U.S. and China comes at a sensitive time for both economies. (Photo by Ken Kobayashi)

TAIPEI -- Top iPhone assembler Foxconn Technology Group is putting production on hold at two flagship display projects in China and the U.S. worth a combined $20 billion as the trade war between the two countries raises uncertainty over demand, according to people familiar with the company's plans.

Foxconn will postpone most of the production planned in a 61 billion yuan ($9 billion) display panel project in the southern Chinese city of Guangzhou for at least six months, according to internal documents obtained by the Nikkei Asian Review. In the U.S., a $10 billion investment in display production in the state of Wisconsin has been suspended and scaled back as a result of negotiations with new Gov. Tony Evers, a Foxconn document obtained by Nikkei shows.

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