Foxconn Considering Display Factory in U.S. for $7 Billion
Two reports from international newspapers said that chairman of Foxconn Terry Gou spoke about the plans this past week speculating that the plant would create up to 50,000 jobs.
Foxconn has considered the building of a facility like this since 2014 and Gou added that if Foxconn was to build the plant in the U.S. it would require a substantial amount of incentives from the U.S. government including inexpensive land as well as power.
The new plant might be an investment together with Apple. Gou said that Apple was willing to make an investment in the plant with Foxconn because it needs panels as well, according to the report released by a newspaper in Japan.
Foxconn is the largest manufacturing partner of Apple and runs the biggest factory for iPhones on the world. It receives a large number of tax breaks from the government in China.
Any investment in such a project by Apple would create a victory politically for President Donald Trump. He has spoken out against the iPhone maker repeatedly for outsourcing its work to China.
Gou added that the increase of this type of protectionism is unavoidable, but has questioned whether consumers in the U.S. would accept absorbing the additional cost of moving work back to the U.S.
In the future, they might have to pay $500 more for products made in the U.S., but the products do not necessarily operate better than a phone that costs $300 said Gou.
Another report said that the possible new plant would involve Japan’s display maker Sharp, which Foxconn acquired in 2015 for over $3.5 billion.
This report is not the first to released about these possible plans. Last December, both logos from the companies appeared in the SoftBank presentation by Masayoshi Son the CEO at the company, when he said he was investing over $50 billion in the tech industry in the U.S. over the upcoming five years.
Gou also said that a factory in the U.S. making displays would benefit Foxconn by lowering the costs of shipping, but did stress that the company would require financial incentives for such a deal to make sense economically.
Pennsylvania is the state that currently is ahead in bidding to win the investment by Foxconn.