Taiwanese electronics manufacturer Hon Hai Precision (aka Foxconn) will open a LCD panel factory in the U.S. in Wisconsin, Reuters reports. The $10 billion plant will take four years to be completed, and receive tax incentives of $3 billion over 20 years. The move is not a big surprise with CEO Terry Gou having discussed a display panel factory in January.

Panjiva data shows U.S. imports of display panels increased 8.0% on a year earlier in the second quarter. That was led by a 19.6% rise in shipments from China, which has displaced imports from South Korea (30.2% lower) and Japan (which slumped by 70.2%). Foxconn’s subsidiaries accounted for 11.4% of imports, lagging Qisda’s 17.8% which made it the number one exporter by volumes.

Chart segments U.S. imports of LCD or LED monitors, displays and panels by country of origin Source: Panjiva

Global exports by Chinese manufacturers have grown more quickly. Shipments increased 9.4% in the past quarter, though they were held back by sales to EU countries which had slowed to a growth of just 2.7% in the three months to May 31.

Over the longer-term Chinese manufacturers have outpaced their regional competitors in a market segment that has stagnated. Exports in the 12 months to June 30 were unchanged on three years earlier on a compound growth basis. By contrast exports from South Korea fell 8.0% over the same period, Panjiva analysis of official data shows.

If the market is stagnating – at least in value terms – a move to be closer-to-market may improve profits via efficiency gains, particularly as mechanization of production increases. The long lead-time on the new factory’s opening means a significant impact on Chinese exports will likely be limited in the coming year though.

Chart segments Chinese exports of LCD or LED monitors and panels by destination. Lower panel compares China total to South Korean exports. Calculations include South Korean government data. Source: Panjiva