iPhone Manufacturer Foxconn Mulling $7 Billion U.S. Display Factory Investment With Apple

Taiwanese iPhone manufacturer Foxconn is considering a $7 billion joint investment with Apple to establish a display manufacturing facility in the United States, it was reported on Sunday.

According to the Nikkei Asian Review, journalists who attended Foxconn's annual end-of-year party quoted chairman Terry Gou as saying that Apple is seeking to invest with the firm in a U.S. facility, which will eventually create 30,000 to 50,000 jobs.

The increase in demand for larger display panels makes local production a better solution than shipping from China to the U.S. market, Gou told reporters. In addition to the proposed display facility, Gou said Foxconn plans a new molding facility in the U.S., with the state of Pennsylvania earmarked as a possible location following investment discussions with local officials.

Gou also said that Smart Technologies, a Foxconn-controlled interactive display startup based in Canada, may move south of the border, after U.S. President Donald Trump signaled a possible renegotiation of the North American Free Trade Agreement.

foxconn
According to reports, Gou said that the rise of U.S. protectionism was an inevitable consequence of the Trump administration, but questioned whether American consumers would be willing to pay significantly more for products as a result.

"In the future they may be paying some $500 more for U.S. products, but those do not necessarily work better than a $300 phone," he said, after urging U.S. authorities to provide concessions on land and electricity to facilitate Foxconn's manufacturing operations.

"Yes, we will continue to add to our investments in China," Gou told reporters. "China is the world's biggest market, and why should we turn down the biggest market?"

Foxconn's facility in Zhengzhou, China, produces over 100 million iPhones every year. Taking into account production from Taiwan and Hong Kong, China was responsible for more than 19 percent of Apple's global revenue in the fourth quarter of 2016.

Rising tension between the U.S. and China could benefit Gou, say people familiar with the tycoon's style. "Foxconn is known to leverage different provinces and countries against each other for better terms," an industry source said, suggesting Gou could pit both countries against each other as both sides courted new investments from the company.

Earlier this week it was reported that Foxconn was planning a new facility next to Apple's forthcoming research and development center in the southern Chinese city of Shenzhen. "Foxconn will not leave. Foxconn will stay in China," Gou told reporters in Guangzhou, when asked whether he plans to move existing manufacturing sites to the United States.

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Tag: Foxconn

Top Rated Comments

yaxomoxay Avatar
51 months ago

That's pretty much why I don't want it to happen.

So, you're saying that just to prevent Trump from claiming victory you would miss the opportunity to more jobs and $7B in direct investments?
Please tell me you didn't vote.
Score: 48 Votes (Like | Disagree)
jerry16 Avatar
51 months ago

Separately, this has zero to do with Trump, but watch stumpy fingers try to take all credit if it happens, as he uses his hands to hyponitise the masses.

How exactly are you sure this has zero to do with Trump? I don't recall any rumors of US based iPhone component production prior to this election cycle. The article even infers it is related to Trump with the bit on US protectionism.

It's as if people are actually afraid Trump may do a few good things for the US.
Score: 38 Votes (Like | Disagree)
JediZenMaster Avatar
51 months ago
How someone can view this as a bad thing regardless of where you fall on the political spectrum is just the prime example of something that deserves a facepalm.
Score: 33 Votes (Like | Disagree)
MadeTheSwitch Avatar
51 months ago
They should put this in coal country and train the people there on 21st century jobs rather than 19th century ones. Win/win.
Score: 26 Votes (Like | Disagree)
jkcerda Avatar
51 months ago

That's pretty much why I don't want it to happen.

So don't invest in the US and help create jobs here because OMG trump much get credit? Wow
Score: 25 Votes (Like | Disagree)
Mac Fly (film) Avatar
51 months ago

Don't do it... Apple is on the decline, you'll have a hard time recouping your investment

MacRumors-Apple CEO speaks!

Separately, this has zero to do with Trump, but watch stumpy fingers try to take all credit if it happens, as he uses his hands to hyponitise the masses.
Score: 21 Votes (Like | Disagree)

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