iPhone Assembler Foxconn in Early Talks to Expand U.S. Operations

Apple manufacturing partner Foxconn is in preliminary stages to build a collection of assembly plants within the United States (via Reuters), potentially fulfilling President-elect Donald Trump's wish that Apple would move the majority of its manufacturing to the U.S. instead of overseas.

Foxconn decided to make a statement about its U.S. expansion after details of the move were picked up and shared by CNBC yesterday. The news alleged that Foxconn would be investing $7 billion into its U.S. expansion and aiming for the creation of 50,000 jobs within the country, all in the next four years. Foxconn simply stated that more details will come after its talks with "the relevant U.S. officials" are over.

foxconn-states

Image via CNBC

"While the scope of the potential investment has not been determined, we will announce the details of any plans following the completion of direct discussions between our leadership and the relevant US officials," the Foxconn statement said.

In the meetings with Donald Trump, Japan's SoftBank also looked towards U.S. expansion and pledged $50 billion in its investment stateside, along with 50,000 new jobs of its own, "a move the U.S. President-elect claimed was a direct result of his election win." In a call made to Trump by Apple CEO Tim Cook, Trump mentioned to the CEO that one of his goals and future achievements would be to "get Apple to build a big plant in the United States," by offering the company incentives and "a very large tax cut" to do so.

Cook was said to have remained neutral on the subject by saying "I understand that" in response to Trump, while Foxconn chairman Terry Gou is said to be less enthusiastic about the idea due to inevitably higher production costs compared to China. Cook explained one of the major reasons Apple's manufacturing is so heavily centered in China is due to the country's large number of individuals with the required "vocational kind of skills."

China put an enormous focus on manufacturing. In what we would call, you and I would call vocational kind of skills. The U.S., over time, began to stop having as many vocational kind of skills. I mean, you can take every tool and die maker in the United States and probably put them in a room that we're currently sitting in. In China, you would have to have multiple football fields.

Foxconn does have manufacturing facilities on a very small scale in the U.S., in Virginia and Indiana, along with logistic locations in California and Texas. Apple has a comparably limited facility in Austin, Texas which manufactures the company's Mac Pro.

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Tag: Foxconn

Top Rated Comments

Rogifan Avatar
54 months ago
So things already in motion that Trump will take credit for. Just like the SoftBank announcement which we have very little details on. And the kool-aid drinkers will lap it up. Just last night on Fox News that clown Corey Lewandowski said people are allowed to say Merry Christmas again because Donald Trump was elected. This is the delusion of the Trump sycophants. They put Obama's hope and change brigade to shame.
Score: 22 Votes (Like | Disagree)
glitch44 Avatar
54 months ago
re: Japan SoftBank

"a move the U.S. President-elect claimed was a direct result of his election win."

Correction: falsely claimed it was a result of his election win. The Japan SoftBank investment fund was formed and announced before the election:

http://www.wsj.com/articles/softbank-group-launches-investment-fund-1476398189
Score: 21 Votes (Like | Disagree)
Zirel Avatar
54 months ago
Excelent!

If Apple starts manufacturing phones in the US means cheap Chinese smartphone stay at bay because their parts aren't worth the manufacturing costs.

So things already in motion that Trump will take credit for. Just like the SoftBank announcement which we have very little details on. And the kool-aid drinkers will lap it up. Just last night on Fox News that clown Corey Lewandowski said people are allowed to say Merry Christmas again because Donald Trump was elected. This is the delusion of the Trump sycophants. They put Obama's hope and change brigade to shame.

You don't live in this universe, do you?



This is from CNBC even!

This is Mr. Trump and the Softbank guy, on Trump Tower, NYC.

So, this is completely President Obama's, right?
Score: 15 Votes (Like | Disagree)
meaning-matters Avatar
54 months ago
No matter what, Trump already gets things done.
Score: 14 Votes (Like | Disagree)
the8thark Avatar
54 months ago
Thank you Donald Trump.
My thanks to the the US nation for voting in Trump so he can get things like this done.

Score: 13 Votes (Like | Disagree)
neuropsychguy Avatar
54 months ago

QFT. Trump's followers will believe it without a single question. The truth is no longer welcome.

I'm no fan of Mr. Trump but every president does this - they either take credit for positive things that happened (and that they had little to no control over) or eschew blame for negative things (that they had little or no control over). Donald Trump is just more brash about it.
Score: 12 Votes (Like | Disagree)

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