Foxconn to spend $10 billion to set up U.S. Display Panel Manufacturing plant

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Foxconn, Taiwan-based world’s largest electronics maker who assembles parts for Apple products is planning to invest close to $10 billion on display panel manufacturing factory in the United States. The company has to yet to decide on the location for the same.

Hon Hai Precision Industry Co. Ltd., which is trading as Foxconn Technology group is a Taiwanese multinational electronics contract manufacturing company headquartered in New Taipei City, Taiwan confirmed the news to Reuters.

The CEO of the company said that they were under the hope of investing $7 billion in order to set up a plant in America. Gou told the reporters after the company’s annual share holder’s meeting that Foxconn is considering places such as Wisconsin, Ohio, Michigan, Pennsylvania and North Carolina as the locations which could be possible for the investment.

Gou said “In July we will make a conclusion”. He also added that the money would be invested by the company for a five-year tenure. He reiterated “This time we go to America, it’s not just to build a factory, but to move our entire supply chain there.”

Vast factories in China are operated by Foxconn wherein millions of people are employed by the company. The company makes most of the Apple iPhones, however, it has not yet invested in the US in a heavy manufacturing sector. Gou stressed on the factor of labor cost, which is high in the US as compared to most Asian countries and hence said that the company would invest less on people and more on automation.

He was of the opinion “In the U.S., the state governors’ sincerity and confidence to attract investment are beyond my imagination.”

The President of America, Mr. Donald Trump has always supported the “creation of American jobs” right from the time of his election campaign. He has been addressing in his announcements and has called for the foreign as well as domestic investments in this aspect.

Tai Jeng-wu, CEO of Foxconn’s Japanese unit ‘Sharp Corp’ said that the company was looking at six places for the display-making plant. The company has operations in Pennsylvania already running.

The deal would be brought to light only when the literal concept of the phase to start manufacturing set up of display-making falls in place.