iPhone Manufacturer To Invest $10BN In The US
Foxconn who is known for one of the companies who assemble Apple iPhones in Asia is reportedly planning to invest around $10 billion in building a display manufacturing plant in the United States.
The cost has been considered due to the pricier labor costs in the United States compared to its usual operation expenses in China where the iPhone is being manufactured.
Foxconn which is also known as Hon Hai Precision Industry Co is now considering the pros and cons of placing the plant in a couple of US states and has been in contact with various state governors and with the White House regarding the company’s plan. Hon Hai is currently one of the biggest consumer electronic manufacturers in the world. Although it operates primarily in China, it has been slowly but steadily expanding in other countries.
The company’s CEO Terry Gou has previously stated that they are hoping to invest around $7 billion in building the plant that would manufacture device displays. The United States currently does not have a panel-making industry despite being ranked second for its television market.
"We are bringing the entire industrial chain back to the traditional manufacturing region of the U.S. That may include display making, semiconductor packaging and cloud-related technologies.” added Gou.
Gou has not discussed the details of the company’s plans and strategy yet. However, the chief executive has reportedly discussed the idea to Foxconn shareholders and explained the plan to establish the company in the United States.
Foxconn reportedly is considering to build the display plant in North Carolina, Michigan, Wisconsin, Pennsylvania, or Ohio. "Our investment in the U.S. will focus on these states because they are the heart of the country's manufacturing sector," stated Gou.
The company currently operates mostly in China to which they have employed over a million people has not made any previous investments in the United States. Gou has stated before that the bright outlook President Donald Trump offers industries who will operate inside the country did attract him to consider investing in the United States.
On the other hand, the company was also one of the companies who pursued Toshiba’s sale of its memory chip unit. Just recently, the Japanese company announced that they have chosen Bain Capital as their preferred bidder. Gou has spoken about his desire to acquire the prized memory chip unit numerous times. The company has stated previously that they intend to offer as much as $27 billion in winning the bid for the Toshiba unit. Hon Hai is reportedly teaming up with Apple in ensuring the acquisition of the deal.