Company - - Jan 23,2017
Taiwan’s technology giant Foxconn has confirmed that it is planning to set up a new plant in the United States with an investment of more than $7 billion.
Chairman of Foxconn Group, Terry Gou announced the plans, saying that the investment will be joint with Apple for a display manufacturing facility in the US. This investment is likely to generate an eventual 30,000 to 50,000 jobs if it gets through. Foxconn manufactures most of the Apple’s iPhones at its factories in China.
An increasing demand for larger displays makes domestic production in the US itself a better solution rather than shipping it from China. Gou also said that Apple is willing to invest in the facility together because they need the as well.
Foxconn, also known as Hon Hai Precision Industry Co., is planning a new molding facility in the US as well, probably in Pennsylvania, according to initial reports.
Separately, Smart Technologies, an interactive display company controlled by Foxconn in Canada, might also move to the US in light of President Donald Trump’s indications that he may go on to alter terms of the North American Free Trade Agreement (NAFTA).
Presently, Foxconn is the largest contract electronics maker in the world and now further plans to expand its operations by including the manufacturing of TV screens along with smartphone displays. Gou stated, the US has no TV display manufacturers even though it is the second largest TV market in the world.
The announcement has come just after US President Donald Trump confirmed his "America First" agenda as soon as he took to the office, overturning older international trade treaties.
However, Gou has also said that he had been considering this move from a number of years. Foxconn’s business partner, Japan-based SoftBank Group, has already pledged for a $50 billion investment in the US.