Foxconn, one of the largest contract manufacturers, is finally taking strides to flag off its U.S expansion. The company is currently mulling over building a $7 billion display manufacturing plant in partnership with Apple. The company’s founder Terry Gou has further added that incentives will be needed to finalize the transaction. This will be Foxconn’s first major step in the U.S territory.
This development comes on the heels of President Donald Trump’s inauguration speech, in which he pledged to put ‘America First.’ He has been making such bold claims since his election campaign. He has been haunting the technology behemoths to build products in the U.S.A or face massive tax liabilities. And Apple has already started taking measures to prevent a blockade in their growth.
With regards to the same, Apple’s prominent manufacturer Foxconn is evidently looking to expand its services to the States. At a company event in Taiwan, Gou disclosed the plans for the said display-making factory. He added that these facilities would create 30,000 to 50,000 jobs in the U.S. And they’re currently involved in discussions with regards to the same with state and local official in numerous states, such as Pennsylvania.
Gou further adds that Foxconn’s move to the United States has been under consideration for years. But it just now that the company plans to bank on the opportunity, thanks to Softbank founder Masayoshi Son. He is a Foxconn business partner and sat with Gou to discuss the terms of their planned move to the U.S, in wake of Trump’s election. Thus, as a result of this meeting, Son decided to pump $50 billion in the United States last year.
This announcement, however, led to the hubbub of Foxconn being one of the partners moving to the States soon. This was revealed through a photograph of Son holding a document with Foxconn’s logo and an alleged $7 billion investment pledge. The manufacturer then published a statement saying they were involved in preliminary discussions to expand their presence in the U.S. And today, al of these facts have been corroborated by the founder himself.
Talking about the same, Gou says,
I thought it was a private conversation, but then the next morning, it was exposed. There is such a plan, but it is not a promise. It is a wish.
Foxconn is also planning to first set up a display panel factory in the country due to the lack thereof. The company is now looking to initially expand upon its partnership with Sharp Corp. It will build the display factory, which would be planned with the said hardware maker. At the moment, Gou adds that Pennsylvania is the most active and other states need to speed up their process. Also, the transaction is said to hinge on incentives, land, water and power at bargain rates alongside other tax benefits.
Talking about these plans, Gou adds,
If U.S. state governments are willing to provide these terms, and we calculate and it is cheaper than shipping from China or Japan, then why wouldn’t Sharp build a factory in the U.S.
Further, Gou assures that the company isn’t losing focus on further building on their China operations. Those facilities will now continue to operate at optimal conditions while exploring potential manufacturing locations in the U.S.
