Foxconn Considers Joint Investment With Apple to Open $7 Billion Display Plant in the U.S.

In an annual year-end party, Foxconn’s chairman Terry Gou reportedly said that the company is mulling an investment of $7 billion with Apple to set up a highly automated display facility in the United States.

"Apple is willing to invest in the facility together because they need the [panels] as well," Gou told reporters following a year end company party in Taipei. The U.S. production site eventually would create 30,000 to 50,000 jobs, said Gou.

The shift in demand towards larger display panels makes local production a better solution than shipping from China, according to Gou. In addition, Foxconn is planning a new molding facility in the U.S. with Pennsylvania being a possible site. 

The sudden interest in building new facilities in the U.S. is largely due to President Trump's push for companies to bring back manufacturing to America. Trump has also signaled that he may want to renegotiate NAFTA. Gou says Smart Technologies, a Foxconn controlled interactive display startup located in Canada, may be moved the United States as a result.

While Gou says the rise of protectionism is "inevitable", he questioned whether Americans would accept paying higher for consumer goods. "In the future they may be paying some $500 more for [U.S.] products, but those do not necessarily work better than a $300 phone," he said.

[Via Nikkei]


 


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