The Foxconn Technology Group is in talks to expand its manufacturing unit to the country of U.S. as well. In order to set up a Foxconn display factory in the U.S., the company is considering a $7 billion investment for the project. During a company event at Taiwan on Sunday, Terry Gou, the founder and chairman of Foxconn said that they plan to build a flat-panel screen factory. If the development of this factory takes place, it will most likely create 30,000 to 50,000 jobs for the U.S. citizens. But Gou also pointed out that in order to make this deal happen, there was a dire need for incentives.
To kick start this project on a rapid note, the electronics manufacturer is in discussion with the state and local officials in Pennsylvania and other such states. This factory will mainly involve Sharp Corp., the electronics manufacturer Foxconn had acquired the previous year. Gou also stated that the company was planning to make such a move for years. The issue was finally raised when Foxconn’s business partner, Masayoshi Son who is also the head of Japan’s SoftBank Corp., spoke to Gou regarding the same. They discussed that in order to have a hold in the American market, a factory in the country was necessary.
Business aspects of the Foxconn display factory in U.S.
After Son had a meeting with Donald Trump in December, Son announced to pledge $50 billion as an investment in the U.S. Along with this; with subtlety, he disclosed Foxconn’s logo claiming an unspecified $7 billion investment as well. After this announcement, Foxconn briefly stated that it was in preliminary discussions to expand its operations in the U.S. Later on, Gou confirmed this news in Taiwan about the plans of setting up the Foxconn display factory.
The thought of setting up this factory aroused as there is no panel-making industry in the country. Even though it has the second-largest market for televisions. Even though the investment for the display plant might exceed $7 billion, it promises significant profits. Gou went on to clarify that these are all just plans, nothing has been finalized yet.
Setting up a display plant in the U.S. might be convenient for Foxconn. This is because it already has existing cooperation and operations in the state of Pennsylvania. The company might prioritize this state due to its power, water, land, infrastructure, and other such investment conditions. Even if a new Foxconn display factory is set up in the U.S., it will still remain active in China.