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Foxconn rumored to be planning US plants

Foxconn rumored to be planning US plants

Fri 09 Nov 2012 7:00pm GMT / 2:00pm EST / 11:00am PST
BusinessOutsourcing

Chinese manufacturing giant said to be evaluating Detroit and LA for new operations

The Chinese manufacturer of electronics from iPhones to Xboxes may soon expand to American shores. A DigiTimes report claims Foxconn Electronics plans to set up manufacturing plants in the US, and is currently considering Detroit and Los Angeles among the cities for its first efforts.

The report cites "market watchers" as the source of the news. While Foxconn is best known as the manufacturer behind Apple's popular gadgets, the new plants wouldn't be putting together iPhone 5s or iPad Minis. DigiTimes reports that the American facilities would be expected to handle LCD TV manufacturing, which is a simpler and more automated process.

That is not the extent of Foxconn's US plans. DigiTimes also reported the company is talking with Massachusetts Institute of Technology for a program that would see American engineers brought to Taiwan or China to broaden their understanding of product design and manufacturing.

6 Comments

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,287 2,507 1.1
A lot of foreign automobiles are built here. Why not electronics too?

Posted:2 years ago

#1

Jason Sartor Copy editor/Videographer, Florida Today

104 33 0.3
Do you suppose Foxconn is aware that the U.S. has work laws? That you can't strap 13-year-olds to machines and force them to work for 16 hours a day for $20, while making them live at the factory.. Also, putting catch nets up around windows is not a solution for a rampant suicide problem among workers.

On a more serious business note, if Panasonic and Sony can't turn a profit building TVs in Japan, and nobody can build a high-end set for a profit outside of China, why does Foxconn think they can do it successfully in the States?

Secondly, if Foxconn can manufacture electronics in the States, then why the heck can't Apple, Microsoft, Dell, GE etc., etc., et all, do it in their own backyard instead of using foxconn in China to begin with?

Thirdly, if foxconn is that profitable that they can manufacture goods in the States, then why can't any American company do it - ESPECIALLY if foxconn is bringing over MIT engineers to design, innovate and improve what they are doing in China. Can't the same U.S. companies hire the American kids from MIT to build a multi-billion dollar business line, or multi-billion dollar saving in-house manufacturing plant rather than outsourcing it to a third-party company to begin with?

Posted:2 years ago

#2

Greg Wilcox Creator, Destroy All Fanboys!

2,196 1,176 0.5
Oh, how can THIS plan go wrong? If they pay workers in their US factory more than they do overseas, what's going to happen when (or if, if the company keeps them in the dark there) they find out?

Of course, making their products here means companies can charge MORE once they factor in the increased labor costs. I can't wait to see that "MADE IN USA (sort of)" flag sticker on the back of that new (and spyware info-stealin') iDevice...

It's the end of the world, I say...

Posted:2 years ago

#3

Péter Ligeti Game Designer, Playlogic

1 0 0.0
Foxconn own factories all around the world (China, Brazil, Czech Republic, Hungary, Slovakia, India, Japan, Malaysia and Mexico) and they manufacture ~40% of all electronic goods. If anyone can figure out how to make a profit in the US, it is them.

BTW they are Taiwanese (ROC) not Chinese (PRC) company.

Edited 1 times. Last edit by Péter Ligeti on 11th November 2012 1:38pm

Posted:2 years ago

#4

David Serrano Freelancer

300 273 0.9
@ Jason Sartor

"Thirdly, if foxconn is that profitable that they can manufacture goods in the States, then why can't any American company do it - ESPECIALLY if foxconn is bringing over MIT engineers to design, innovate and improve what they are doing in China."

Exactly! Apple for example, has 100 billion dollars in liquid assets. They could invest 5 billion in manufacturing R&D and still have 95 billion in the bank. But as an Apple exec told the NY Times: "we don’t have an obligation to solve America’s problems. Our only obligation is making the best product possible.” So the question is if corporations don't have an obligation to worry about America's economic problems, why should the America government worry about high corporate tax rates or how regulations negatively impact their businesses?

Edited 2 times. Last edit by David Serrano on 11th November 2012 7:32pm

Posted:2 years ago

#5

Felix Leyendecker Senior 3D Artist, Crytek

184 204 1.1
It's not about labor costs. The reason why foxconn and chinese manufacturers are so successful is because of the sheer volume of skilled workers they have, and because facilities and production lines can be ramped up so quickly.

This is a good read about the topic: http://www.heraldtribune.com/article/20120123/ARTICLE/301239999

Posted:2 years ago

#6

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