Taiwanese electronics company, Foxconn, has expressed plans to invest almost $7 billion in a display plant set to be operated in the United States and can create around 30,000 to 50,000 jobs, stated by the company’s CEO Terry Gou.
“We confirm that we are in preliminary discussions regarding potential investment that would represent an expansion of our current US operations… We will announce the details of any plans following the completion of direct discussion between our leadership and the relevant US officials,” Foxconn stated.
Foxconn is the company responsible for the assembly of Apple and Sony devices in China and known as the largest contractual electronics maker in the world. The electronics company has been seen recently having discussions with US President Donald Trump regarding business and manufacturing matters.
Throughout Trump’s campaign, he has set out to bring back most manufacturing jobs in the US, suggesting to manufacturing companies to relocate manufacturing plants back to America or they would face huge tariffs. Trump has previously lashed out on China, in particular, pertaining to the country as the reason why most manufacturing jobs are lost in the United States.
After Trump’s inauguration, the White House further emphasized the new administration’s intent in making plans to alter trading relationships with Asian countries.
Gou added that they have long been planning in setting up a manufacturing plant in the US prior to Trump’s “America first” plans. However, the plans were put into action when Foxconn business partner, Masayoshi Son has had discussions with Trump on a December meeting.
According to reports, Foxconn is planning to partner with acquired Japanese company, Sharp Corp. in starting the US plant focused on manufacturing of TV screens and smartphone displays. Foxconn’s long-term partner, Apple Inc. was also reported to be a part of the display-manufacturing facility as an investor in the project.
“I have discussed with my major clients about going to the US and they are also willing to invest, including Apple,” said Gou.
The Taiwanese company has acquired Sharp’s 66% stake for $3.7 billion in 2016 after the Japanese electronics company has struggled to maintain its business, a deal which Gou considers “worth it.”
Even though the United States was the second-largest market for televisions, the country had no panel-making industry or facilities; therefore an investment in the display plant shows a promising future for Foxconn.
Foxconn currently has operating headquarters in Pennsylvania, which will part of the company’s priority in building the plant. Meanwhile, Gou assured that operations in China will remain active.
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