Apple and Foxconn weighing $7 billion display plant in U.S., report says
Apple's main manufacturing partner, Foxconn, is considering the possibility of a $7 billion joint investment in an automated display production facility in the U.S., the latter company's chairman said on Sunday.
"Apple is willing to invest in the facility together because they need the [panels] as well," Terry Gou told the press following a year-end party in Taiwan, according to Nikkei. The proposed facility, first rumored earlier this month, would allegedly create between 30,000 and 50,000 jobs.
Although U.S. electronics manufacturing is typically more expensive -- due to currency values, and higher labor and operational costs -- Gou claimed that growing demand for bigger display panels makes U.S. production a better option than importing parts from China.
Foxconn is also said to be planning a new molding plant in the U.S., with Pennsylvania being a possible target in the wake of investment talks with the state. In fact, a representative from Pennsylvania's trade office is said to have attended Sunday's party.
The decision to increase U.S. manufacturing is potentially a response to President Donald Trump, who campaigned on a promise of growing domestic jobs, and has threatened to renegotiate NAFTA as well as make it expensive to import Chinese goods. Gou noted that a Canadian interactive display company, Smart Technologies, could be relocated to the U.S. because of Trump's NAFTA plans.
He urged the U.S. government to offer concessions on land and electricity to encourage manufacturing, warning that products could otherwise become unaffordably expensive.
"In the future they [shoppers] may be paying some $500 more for products, but those do not necessarily work better than a $300 phone," he said.
Trump has claimed that Apple CEO Tim Cook could bring iPhone manufacturing to the U.S., perhaps lured by the promised of a "very large tax cut" for relocating jobs. In November Nikkei said that Apple had asked Foxconn to consider the possibility.
Gou commented however that Foxconn will continue expanding in China. One such effort is believed to be an Apple prototype facility located in Shenzhen.
"Apple is willing to invest in the facility together because they need the [panels] as well," Terry Gou told the press following a year-end party in Taiwan, according to Nikkei. The proposed facility, first rumored earlier this month, would allegedly create between 30,000 and 50,000 jobs.
Although U.S. electronics manufacturing is typically more expensive -- due to currency values, and higher labor and operational costs -- Gou claimed that growing demand for bigger display panels makes U.S. production a better option than importing parts from China.
Foxconn is also said to be planning a new molding plant in the U.S., with Pennsylvania being a possible target in the wake of investment talks with the state. In fact, a representative from Pennsylvania's trade office is said to have attended Sunday's party.
The decision to increase U.S. manufacturing is potentially a response to President Donald Trump, who campaigned on a promise of growing domestic jobs, and has threatened to renegotiate NAFTA as well as make it expensive to import Chinese goods. Gou noted that a Canadian interactive display company, Smart Technologies, could be relocated to the U.S. because of Trump's NAFTA plans.
He urged the U.S. government to offer concessions on land and electricity to encourage manufacturing, warning that products could otherwise become unaffordably expensive.
"In the future they [shoppers] may be paying some $500 more for products, but those do not necessarily work better than a $300 phone," he said.
Trump has claimed that Apple CEO Tim Cook could bring iPhone manufacturing to the U.S., perhaps lured by the promised of a "very large tax cut" for relocating jobs. In November Nikkei said that Apple had asked Foxconn to consider the possibility.
Gou commented however that Foxconn will continue expanding in China. One such effort is believed to be an Apple prototype facility located in Shenzhen.
Comments
Nothing to get excited over.
I'm not able to reconcile the 2 bits of information. Automated manufacturing means less human intervention. How exactly are the 30-50k jobs being created? You don't need that many people to manage the automation plant. Are these permanent jobs or temporary work contracts for installing and setting up the automation plant?
I can't imagine a scale of manufacturing that uses automation and needs 50k jobs. I'm definitely missing something here.
You hit the problem on the head Safi. Steve Jobs made it clear, that contrary to popular understanding, the greatest impediment to moving production to the US was the shortage of engineers (not just software BTW, there are many other engineering jobs necessary to run a heavily automated plant). This is an opportunity with the new administration to shift back towards a training and education model focused on meeting job demand, rather than funding each persons "self-discovery." Indeed, most of these type of engineering jobs won't require Phd, or even traditional 4 year schools. Let the revolution begin.
PS, it is wonderful to hear that there is so much discussion of creating good paying jobs in the tech and other industries. Previous administrations of both parties had given up on this, so kudos to a fresh start and innovative thinking.
Then I got them a visit to a high tech race car builder. They have a different opinion now. There is hope yet.
But this is not a new thing. As a now retired Engineer I know that I had to work a lot harder than my roommates who were doing SOFT subjects (Business Studies, English History) and this was in the mid 1970's.
I'm still tinkering with machines. The new Full size Steam Loco that I'm helping to build should steam for the first time this year.
At the time, I connected the subject with Foxconn and Apple's large investments in Sharp's IGZO technology, but I don't remember if I commented on that angle at the time. I'm not the one to do a competent search for this story in the AI archives, but I'm pretty sure it's there. I also associated the story with Gene Munster's mythical Apple-branded TV set, but doubt I said anything about that, since that idea had become a subject of ridicule from the beginning.
Anyway, attributing this development to Trump's intervention is very dangerous, because it ignores the real history of the technological and economic forces that are behind Terry Gou's and presumably Tim Cook's thinking. They've been looking ahead toward building large oxide displays and maybe smaller oxide-backed OLED displays for many years, possibly in the US, and possibly since their first investments in Sharp in 2012.
What's new is that they can now use their old plans as bones to throw to the simple-minded, America-first, capitalist running dogs, as Mao used to call them. I hate to see this kind of pandering, which Trump will be able seize on for self-aggrandisement, and once again no one will know the real more interesting story. That will be buried in political posturing.
How would I search for that NBC story, by the way?
Actually, after a quick look around here at home I can't find a single item that I have that is "made in USA" .. in manufactured goods the US simply doesn't have anything to offer that is both interesting and competitive.
America can has already forfeited too much for too long.