Foxconn Chairman Raises Uncertainties About U.S. iPhone Manufacturing Plant

Uncertainties over Foxconn's manufacturing expansion into the United States have been raised once again, this time following comments made by company chairman Terry Gou, who spoke to reporters at an event celebrating the start of construction on a $8.87 billion display plant in Guangzhou, China (via Nikkei). At the ceremony, Gou told reporters he had just returned from a trip to Washington without confirming if he met with the Trump administration while he was there.

Since the November election, and even before it, the Trump administration has advocated for Apple specifically to make some of its products in the U.S. and not at foreign facilities, leading to multiple reports that Apple suppliers are looking into building large plants stateside. Now, Gou has raised concerns over any of the company's previous U.S. manufacturing plans because he's not sure if the U.S. government can work fast enough to stay ahead of all of the work needed to be done before any company like Foxconn can build a successful, large-scale facility in the states.
"I am concerned as to whether the U.S. can resolve all the investment issues in only a few months' time," Gou said, adding America also lacks the skilled labor and comprehensive supply chain the display industry requires.

"Does the U.S. offer incentive programs for foreign investors? They'll need to pass bills first, and we'll need to wait for American authorities to make a decision first," Gou said.
Ultimately, Gou tried to avoid strictly siding with one country or the other, saying that the best course of action would be to support both once the option became available. "I am not willing to choose between [the U.S. and China]. Why should I give up on any market?" Gou ended the line of questioning from reporters with a pledge for the governments of both countries to avoid a trade war and "get along peacefully."
"It is in the interest of the entire humanity that China and the U.S., the top two economies in the world, can get along peacefully," Gou said. "They are in the process of gambling with each other, and I can foresee that the two will eventually work together to grow [their] economies and deliver beneficial outcome for many. If they don't, then everyone will be losers."
In a separate report from Reuters, Foxconn is now said to have lost ground in its bidding for Toshiba's memory chip business "due to its close ties with China." The Japanese government is worried about "the transference of key technology" if a winning bidder has a close relationship with China, and Toshiba executives are reportedly aware of the government's wishes and "will take into account how close bidders are to China in the selection."

Apple accounts for over 50 percent of Foxconn's total revenue, and because of lukewarm demand for the iPhone 7 in 2016, Foxconn saw its first ever profit decline since the company went public 1991. Optimism has now surrounded the company's 2017 outlook, however, due mostly to excitement for the debut of the "iPhone 8," perhaps called the "iPhone Edition."

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Tag: Foxconn


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8 weeks ago
Duh.
I've ALWAYS said this.
Foxconn's largest facility employs 400,000 workers.
Where would they put that in America & who would work there??
It's not feasible! Ok... imagine they found a place near Los Angeles to put it (unlikely); they'd still need to hire one in eight of EVERY SINGLE resident, just to run the place! Get real.
Not to mention what they said about not finding people accustomed to/fit for that type of labor.
There, it is a badge of pride to work those jobs & do so meticulously.
Here, that's considered garbage "menial labor" & people do those type of jobs begrudgingly, & at the lowest amount of quality they can skate by with, whilst keeping their job.

We DO need new industries & new jobs in our country...... but NOT these type of factory jobs.

Make American Great Again meant pre- industrial revolution????!
Rating: 16 Votes
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8 weeks ago

We DO need new industries & new jobs in our country...... but NOT these type of factory jobs.

Make American Great Again meant pre- industrial revolution????!

Foxconn would also have to deal with all those pesky environmental hurdles foisted on them by the EPA.

{EPA being slowly dismantled}

Pre-industrial devolution it is. :D
Rating: 8 Votes
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8 weeks ago
Oh please. Greed is why you don't want to be here.
Rating: 7 Votes
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8 weeks ago

Oh please. Greed is why you don't want to be here.


You mean a company doesn't exist to provide you things for no profit?! Next you'll tell me that people expect wages!
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Building a large scale plant in the US requires 100's if not 1000's of engineers, the US just doesn't have them.

Congrats to people on their SJW degrees, I'm sure the pay and befits are great at Starbucks and all, but maybe people should have put in some work, and gone into a field that is needed in the real world.


Get back to me when huge portions of the American population stop expecting to make a comfortable living with nothing more than a middle school diploma. It's not people with SJW degrees, it's people with ridiculous expectations of reliving "the old days" and their sustained attacks on anyone who dares to try to get an education.
Rating: 6 Votes
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8 weeks ago

Foxconn is well known for breaking promises:
The Trump administration, as well as his supporters, are getting played.

The Trump administration, as well as his supporters, are getting played... by Trump.;)
Rating: 5 Votes
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8 weeks ago

What makes both of you think Foxconn / Apple make such an enormous factory in US to build the entire product line?

For many reasons the first plant would be modest sized, located in an area with a large labor pool (NE looks ripe), and produce a top-of-line product where the higher product costs are offset by higher price.
Also, it will only supplant main production, not replace it.

Of course it will be challenge, but doable.

Also: regardless of how skilled the labor pool is, there will be some amount of training to assemble iPhones.


That's assuming that consumers are willing to pay that higher price, which seems to go against just about every buying behavior of American consumers who turned to WalMart for low prices, bought clothes that were made in Indonesia because they were cheaper, and made sure Toyota sells more cars here than one can imagine.

In the end, people can talk a lot about how they want "hardworking Americans to be making things again" as an empty platitude, and then vent their faux outrage at a ballot box, but when the chips are down, they choose the cheaper option with their wallet, and those big morals suddenly look pretty flimsy in the face of parting with cold, hard cash.
Rating: 4 Votes
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8 weeks ago

You mean a company doesn't exist to provide you things for no profit?! Next you'll tell me that people expect wages!
[doublepost=1489069349][/doublepost]

Get back to me when huge portions of the American population stop expecting to make a comfortable living with nothing more than a middle school diploma. It's not people with SJW degrees, it's people with ridiculous expectations of reliving "the old days" and their sustained attacks on anyone who dares to try to get an education.


Oh please. There is education and then there is education as a business. All I've seen from the so called "educated" in this country is a bunch of morons that are too busy protesting things that don't matter yet have no idea how to write a check out or how a lease works. In this country a college education is nothing more than a 1940's high school education...and even then it is lacking. Everyone is brainwashed into going to these schools and paying tens of thousands of dollars for what should have been taught in the public school systems. Half of these people going to colleges have no idea what they want to do and then end up majoring in something pointless that doesn't help them at all in the future. We used to teach trades in high school and give kids exposure to all kinds of different things so they would have a good idea by the end what they wanted to do. Not today. Today we just prep them for college with all kinds of rubbish courses and give then no foundation for the future. The 1970's was the last era of proper education in this country. The school systems here in this country are just setting up kids to be customers of the colleges. The only college education worth a damn in this country is for specialized fields like medicine. Go to a state college and you'll learn all about trans gender bathrooms but not how the world works. In every field I have worked in I was amazed at how much these recent grads didn't know, yet the guy that didn't go has a better grasp on the job. I saw that the most in IT. The added benefit of todays education is nobody knows what its like to fail or loose something. If they do bad in school, mommy fights with the school and the grades somehow change. If they do poorly at sports, they get a trophy. If they "try" in certain schools (read coalition of essential schools ('https://en.wikipedia.org/wiki/Coalition_of_Essential_Schools')) that is good enough to pass. It is creating a generation of idiots with a piss poor education they paid $100k for.

We went to the moon is the 1960's...yet todays scientist and industry specialists seem to have no idea how to make that happen. You'd think it would be pretty easy.....but not if you have a lesser education than the people who did it in the first place. The did it on rope memory and a fancy calculator. Today we have a super computer in our pocket that could take us there...yet its taking forever. It took them 9 years to do it in the 1960s and 95% of the things to do it weren't invented. Today we have all the knowledge and better tech, yet nothing is happening.

Our education system is run by morons and things like common core are just a complete waste of time and resources. I think education in the 1940's & 50's worked well for us....let's start there. I've seen the course work for 1-3rd grade recently and it is an appalling mess. There was a section dedicated to convincing kids there is no wrong answer. It was like "if Billy has 20 apples, how may of them are green?" No matter what you put, its correct. What kind of rubbish b.s. is that? How about you wake me up when America learns what education is. Less trans-gender bathroom diversity acceptance education and more "here is how money works".

When I went to school they pretended like 1946 - 2000 didn't exist...so we learned nothing. It was all Greece, Egypt, Romans, Civil War, & Revolutionary War. We also couldn't be bothered to learn how the government works...but I can read hieroglyphics and order a gyro . That's ***** useful.
Rating: 3 Votes
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8 weeks ago
This sounds par for the course with Foxconn, they were going to build a big facility in Indiana but it just never happened (years later people are still waiting for it)....would expect the same with this - might be (have been?) a nice foil to get a better deal for them in China etc...

Building a large scale plant in the US requires 100's if not 1000's of engineers, the US just doesn't have them.

Congrats to people on their SJW degrees, I'm sure the pay and befits are great at Starbucks and all, but maybe people should have put in some work, and gone into a field that is needed in the real world.


Have to take issue here. We have lots of engineers in the U.S. (whether IT, electrical or mechanical) and they graduate from our colleges every year...that's how you get new commercial rocket company's with massive factories (SpaceX in particular and BlueOrigin) as well as company's like Tesla who is building out a massive factory for their Model 3, as well as silicon valley. Most bitching by large companies multimillionare payed executives regarding engineers really comes down to these workers are too expensive for their profit desires in the U.S. compared to if they just used people from China etc. for a fraction of the price - which is an entirely different issue...as the pay disparity between the top and bottom of the economy is worse than it was in the 1920's.

If Apple wanted to make stuff here (exhibit Mac Pro - notwithstanding the oddball design and neglect it's had), they could, it'd take some time and the people & facilities would cost more than they do in communist China or Vietnam, but they could do it if they wanted it bad enough.
Rating: 3 Votes
Avatar
8 weeks ago
Building a large scale plant in the US requires 100's if not 1000's of engineers, the US just doesn't have them.

Congrats to people on their SJW degrees, I'm sure the pay and befits are great at Starbucks and all, but maybe people should have put in some work, and gone into a field that is needed in the real world.
Rating: 3 Votes
Avatar
7 weeks ago

Apple hardly ever takes less margins. Ignore the USB C cable price adjustments.

Apple will raise prices. Look at iPad prices. Went up. Look at iPhone prices. Went up. Look at MBP prices. Went up.


What BS are you talking about?
Last years iPad Air 2 is now $399, same cost as always for cellular (+$129)
('http://www.apple.com/shop/buy-ipad/ipad-air-2')
New iPad Pro 9.7 has several features not on standard iPad, for $100 more, starting at $599.

Standard iPhone 7 (not plus) is the same price as last years iPhone 6.

So you are wrong on 2 counts, maybe all 3 (did not check MBP price history)
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Puke.
Lol, yeah- run that by Jony!

Plus.... you're just making this stuff up!
Where's the red, white, & blue Chevy trucks that cost the same as a Mercedes but people are buying them out of national "loyalty"? Oh, they don't exist? Oh, because you're full of it?
Ok.


Then you are proof that Trump is wrong, that people don't care where its made, so long as it is cheap.
Rating: 2 Votes
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