Foxconn With Apple To Set Up A Manufacturing Facility Of $7 Billion In the US
Foxconn, Taiwan technology giant and also the world’s largest electronic contract maker are likely to team up with the Cupertino-based, San Francisco company Apple to set up a display-making facility in the United States.
Terry Gou, the company’s chairman, and the chief executive said on the media reported on Monday that the investment was estimated and which would exceed $7 billion.
The plans have come after the US President Donald Trump pledged out to put “America First” in his inaugural speech held on Friday, that meant overturning the international trade treaties which prompted Terry Gou to warn about the rise of protectionism and also the trend for politics to underpin the economic development.Trump had repeatedly threatened the high import tariffs during his campaign to encourage the American and foreign companies to move its production to the US, as reported by BBC.
He has also singled out China as the significant cause of lost manufacturing jobs in the United States.
Mr.Gou told the reporters on the sidelines of a company event that Foxconn’s proposal to build a display plant would be planned with its Sharp Corp unit, depending on many factors, such as the investment conditions, which need to be negotiated at the US’s state and federal levels.
Foxconn was formally known as the Hon Hai Precision Industry Co and has got its most factories located in China where the Apple’s iPhones got assembled.
Mr.Gou said that they had been considering such a move for years and the issues came up when Foxconn’s business partner Masayoshi Son, who was also the head of Japan’s SoftBank Group Corp, talked to him before a December meeting Masayoshi Son had with Trump.
As the result of the meeting, Masayoshi Son pledged for a $50 billion for investment in the United States and inadvertently disclosed the information showing Foxconn’s logo and an unspecified additional $7 billion (approximately Rs. 47,649 crores) investment.
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Also, Foxconn has issued a brief statement that it was involved in preliminary discussions to expand its US operations, without elaborating.
Mr.Gou said that Mr.Son was a good friend and added that Mr.Son had asked him for his views about investing in the US for which Mr.Gou answered that the United States has got no panel-making industry but it was the second-largest market for televisions.
An investment for a display plant in the US would likely exceed $7 billion and would create about 30,000-50,000 jobs, Mr.Gou answered Mr.Son.
Mr.Gou said that he thought it to be a private conversation, but the next morning it was exposed. He added that it such a plan, but it was not a promise. It was a wish.
Foxconn has its existing cooperation and operations in Pennsylvania, which was a state the Foxconn would prioritize, depending on land, water, infrastructure, power and other investment conditions, he said.
Gou added that Foxconn would remain active in China, dispelling the talk that Beijing might be pressuring Foxconn about its investments.
Taiwan’s tech-dominated manufacturers have been nervous about the potential US trade policies because the US President Donald Trump has threatened to raise tariffs on imports from some countries, most notably with China.
Foxconn is one among the biggest employers in China, where it operates factories that churn out most of the Apple Inc’s iPhones.
The White House website had updated after Trump’s inauguration that made things clear that the new administration would pursue plans to alter its trading relationships with the Asian countries.
Trump has also said that he would renegotiate the North American Free Trade Agreement (NAFTA) with Canada and Mexico.