Foxconn Considering $7BN Factory in US (1 Viewer)

[Jobber]

https://www.bloomberg.com/news/articles/2017-01-22/foxconn-weighs-7-billion-u-s-factory-with-apple-nikkei-says?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social

Foxconn Technology Group Chairman Terry Gou told reporters in Taipei the company is considering a joint investment with Apple Inc. for a display manufacturing facility in the U.S., according to a report by the Nikkei Asian Review.

The facility would cost more than $7 billion and may create an eventual 30,000 to 50,000 jobs, the publication cited Gou as saying. The rising demand for larger displays makes domestic U.S. production a better solution than shipping from China and “Apple is willing to invest in the facility together because they need the (panels) as well,” he said. Apple didn’t immediately respond Sunday to a Bloomberg News request for comment.

Foxconn, also known as Hon Hai Precision Industry Co., is also planning a new molding facility in the U.S., possibly in Pennsylvania, Nikkei reported. Separately, Smart Technologies, a Foxconn-controlled interactive display company in Canada, may move to the U.S. in light of President Donald Trump’s indication he may seek to alter terms of the North American Free Trade Agreement, Nikkei reported Gou as saying.
Gou said he sees American protectionism as “inevitable” while questioning whether U.S. consumers will be willing to pay much higher prices for equipment of equal quality, according to Nikkei. The publication said Gou spoke to reporters after Foxconn’s holiday party in the Nankang district of Taipei.

 

[Dan Lambskin]

Thanks Obama 

 

[DaVinci]

Looking forward to the drop in the child unemployment rate. 

 

[HellToupee]

Back in January 16

Republican presidential candidate Donald Trump warned  that he wouldforce Apple, the U.S.'s most profitable company, to manufacture all of its products in the U.S. if he is elected president in November 2016.

Technology blog Gizmodo reports that during a speech at Liberty University in Virginia late Monday, the frontrunner for the GOP ticket said, "We're going to get Apple to build their damn computers and things in this country instead of in other countries."

From November....

Trump Still Pushing Apple to Manufacture in the U.S.



Donald Trump has changed many of his positions from the campaign, but he apparently remains opposed to Apple's overseas manufacturing strategy.

The U.S. President-elect said he received a call from Apple CEO Tim Cook on Monday. In the call, Trump said he pushed Cook about bringing manufacturing jobs back to the United States, a topic he frequently hit on the campaign trail.

"One of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here," Trump said he told Cook, according to a transcript of the President-elect's interview with the New York Times on Tuesday.

Get Data Sheet, Fortune's technology newsletter.

The Apple CEO simply replied that he understood the concern, according to Trump's comments in the interview transcript. Fortune has reached out to Apple for comment and will update this story if a response is received.

As on many other issues, in the interview, Trump struck a more conciliatory and reasonable tone in dealing with Apple than he had during parts of the campaign. After Apple declined to help the FBI unlock an iPhone used by one of the San Bernardino shooters, Trump called for a boycott of Apple products. "Tim Cook is looking to do a big number, probably to show how liberal he is," Trump said back in February, at the height of the iPhone unlocking controversy. "But Apple should give up, they should get the security or find other people."

Cook was no fan of Trump's during the election, either. The Apple CEO co-hosted a fundraiser for Hillary Clinton and Republican House Speaker Paul Ryan, but not for Trump. After the election, Cook called for unity in an email to all Apple employees.

On the outsourcing debate, Cook has previously said Apple would not be able to shift much of its manufacturing back to the United States because of a lack of workerswith the proper skills. The company does assemble the Mac Pro, one of its most niche products, at a factory in Texas. According to several reports after the election, Apple has asked its supply and manufacturing partners about the possibility of doing more work in the U.S.

For more on Trump's impact on business, watch:

Analysts have said that bringing Apple manufacturing to the U.S. could raise costs, ultimately leading to higher prices for consumers.

But Trump said he told Cook that he was planning a big tax cut and the elimination of many regulations that raise costs for companies operating in the United States.

"I think we’ll create the incentives for you, and I think you’re going to do it," Trump said he told Cook. "We’re going for a very large tax cut for corporations, which you’ll be happy about."

 

[Jobber]

Onshoring has been a thing for a [short] while now. Trump's promises are just going to speed it up a bit or just plain push some who were in the fence. On top of that, these factories seem to be benefitting areas that really need jobs.

 

[Ilov80s]

The jobs is obviously awesome. The part about Americans paying much more for products is not awesome.

 

[Ilov80s]

The jobs is obviously awesome. The part about Americans paying much more for products is not awesome.

 

[bagger]

https://www.bloomberg.com/news/articles/2017-01-22/foxconn-weighs-7-billion-u-s-factory-with-apple-nikkei-says?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social

Foxconn Technology Group Chairman Terry Gou told reporters in Taipei the company is considering a joint investment with Apple Inc. for a display manufacturing facility in the U.S., according to a report by the Nikkei Asian Review.

The facility would cost more than $7 billion and may create an eventual 30,000 to 50,000 jobs, the publication cited Gou as saying. The rising demand for larger displays makes domestic U.S. production a better solution than shipping from China and “Apple is willing to invest in the facility together because they need the (panels) as well,” he said. Apple didn’t immediately respond Sunday to a Bloomberg News request for comment.

Foxconn, also known as Hon Hai Precision Industry Co., is also planning a new molding facility in the U.S., possibly in Pennsylvania, Nikkei reported. Separately, Smart Technologies, a Foxconn-controlled interactive display company in Canada, may move to the U.S. in light of President Donald Trump’s indication he may seek to alter terms of the North American Free Trade Agreement, Nikkei reported Gou as saying.
Gou said he sees American protectionism as “inevitable” while questioning whether U.S. consumers will be willing to pay much higher prices for equipment of equal quality, according to Nikkei. The publication said Gou spoke to reporters after Foxconn’s holiday party in the Nankang district of Taipei.

How much of the $7B is allocated to their suicide nets?

 

[moleculo]

If true, this would be a great thing.  I hope it works out.

 

[Jobber]

The jobs is obviously awesome. The part about Americans paying much more for products is not awesome.

Not really.

https://www.bloomberg.com/news/articles/2014-04-25/china-vs-dot-the-u-dot-s-dot-its-just-as-cheap-to-make-goods-in-the-usa

"The country with the lowest manufacturing costs, we found, is not China. It’s Indonesia, then India, Mexico, and Thailand. China comes next—with Taiwan’s costs just a tad higher and the U.S.’s a bit more than that, ranking America No. 7 in our study.""As Chinese labor costs rise, American productivity improves, and U.S. energy expenses fall, the difference in manufacturing costs between China and the U.S. has narrowed to such a degree that it’s almost negligible. For every dollar required to manufacture in the U.S., it now costs 96¢ to manufacture in China, before considering the cost of transportation to the U.S. and other factors. For many companies, that’s hardly worth it when product quality, intellectual property rights, and long-distance supply chain issues are added to the equation."

 

[Ilov80s]

Not really.

https://www.bloomberg.com/news/articles/2014-04-25/china-vs-dot-the-u-dot-s-dot-its-just-as-cheap-to-make-goods-in-the-usa

"The country with the lowest manufacturing costs, we found, is not China. It’s Indonesia, then India, Mexico, and Thailand. China comes next—with Taiwan’s costs just a tad higher and the U.S.’s a bit more than that, ranking America No. 7 in our study.""As Chinese labor costs rise, American productivity improves, and U.S. energy expenses fall, the difference in manufacturing costs between China and the U.S. has narrowed to such a degree that it’s almost negligible. For every dollar required to manufacture in the U.S., it now costs 96¢ to manufacture in China, before considering the cost of transportation to the U.S. and other factors. For many companies, that’s hardly worth it when product quality, intellectual property rights, and long-distance supply chain issues are added to the equation."

That's fair. I was only commenting based on what the article said.

 

[Ilov80s]

It's Apple. Their customers are already OK with overpaying for inferior products. No one buys an iPhone because it's a fairly priced good deal. It's a shiny package of features you can get elsewhere for less, just not as pretty. 

It's like complaining about the price of some $4000 designer dress. The people that buy them don't care. The high price is the point. 

 Very good point, not sure what the price increase would be. I'm skeptical on protectionism but I'm not an Econ expert. I'm open to the idea that this can work. We certainly have a population of people that would really benefit from manufacturing jobs. I still think the biggest threat to manufacturing jobs is automation/technology. I'm not sure how we deal with that. 

 

[moleculo]

I don't know how FoxConn operates or what goes into manufacturing displays.  If it's highly automated, labor costs are minimized and the primary advantage China has over US manufacturing is reduced.  

I think that what's going on is that it's becoming more and more difficult to find good labor in China.  Just like here, the laborers don't really want to assemble widgets all day, every day.  So, when they all take their vacation for Chinese New Year (coincidentally, my guys are shutting down starting tomorrow), lots of them don't come back - they find new work closer to their homes that pay more.  It's becoming harder and harder to retain workers, and hence, labor wages rise.  This high annual turnover can be tough to deal with, and makes manufacturing in USA a bit more attractive (especially with threats of a tariff on the horizon).

This is a really great thing because of not just the direct impact, but more the indirect impact.  FoxConn here means their suppliers would come here.  Other product labels/high level manufacturers would come back.  The whole eco-system of US manufacturing returns.

I know we are supposed to be free trade and all.  However, maybe threats of trade-wars/tariffs can work in our benefit without us actually implementing.

 

[saintfool]

Kiss of death for Apple then. 

 

[Sinn Fein]

Is this like Comic-Con - except for Trumpites?

 

[culdeus]

Apple contracts a lot of stuff out of TSMC in Oregon.  It's a 3 Billion plant that employs less people than a McDonalds.  

I highly doubt 30k jobs could be created in a similar manner.  The vast majority of electronics manufacturing is automated from start to finish.  

My guess is looking at a few hundred jobs and the labor cost delta is so small may as well just build it here, same as anything of the sort.

 

[NutterButter]

Should be a lot of nice jobs

 

[culdeus]

Should be a lot of nice jobs

Yeah, exactly.  Welcome our robot overlords.  And I'm pretty sure displays are already pretty automated manufacture.  

 

[Long Ball Larry]

It's Apple. Their customers are already OK with overpaying for inferior products. No one buys an iPhone because it's a fairly priced good deal. It's a shiny package of features you can get elsewhere for less, just not as pretty. 

It's like complaining about the price of some $4000 designer dress. The people that buy them don't care. The high price is the point. 

Apple contracts a lot of stuff out of TSMC in Oregon.  It's a 3 Billion plant that employs less people than a McDonalds.  

I highly doubt 30k jobs could be created in a similar manner.  The vast majority of electronics manufacturing is automated from start to finish.  

My guess is looking at a few hundred jobs and the labor cost delta is so small may as well just build it here, same as anything of the sort.

This says that the plant would be for large-screen tvs for its Sharp Corp unit and does not reference Apple at all. 

https://www.yahoo.com/tech/foxconn-ceo-says-investment-display-plant-u-exceed-120029682--finance.html

 

[culdeus]

This says that the plant would be for large-screen tvs for its Sharp Corp unit and does not reference Apple at all. 

https://www.yahoo.com/tech/foxconn-ceo-says-investment-display-plant-u-exceed-120029682--finance.html

Well, I was mainly casting doubt that a electronics factory in today's world could generate 30,000 jobs no matter how big it is.  Even the ones that Apple uses need hardly any real people on a day to day basis to operate.  

 

[MaxThreshold]

Apple contracts a lot of stuff out of TSMC in Oregon.  It's a 3 Billion plant that employs less people than a McDonalds.  

I highly doubt 30k jobs could be created in a similar manner.  The vast majority of electronics manufacturing is automated from start to finish.  

My guess is looking at a few hundred jobs and the labor cost delta is so small may as well just build it here, same as anything of the sort.

What?  The actual president of foxconn says 30k to 50k jobs would be created but some guy on an internet message board is sure that he's lying and it would only be a few hundred jobs?  Why would the CEO make such a claim if the gap was actually that big?

 

[moleculo]

Should be a lot of nice jobs

I assume the employment # cited references the eco-system involved - suppliers who will locate to be close, etc.  Plus construction of the plant, manufacturing the robots, maintenance of robots, logistics, etc.

 

[Long Ball Larry]

Well, I was mainly casting doubt that a electronics factory in today's world could generate 30,000 jobs no matter how big it is.  Even the ones that Apple uses need hardly any real people on a day to day basis to operate.  

fair, just wanted to make the point since the jobs point and the pricing issue referenced above related to Apple/smartphones.  A little unclear why the one references Apple and/or how they are involved in the venture.  Maybe just using some of their cash to do something and/or setting up a future move into tvs.

 

[culdeus]

What?  The actual president of foxconn says 30k to 50k jobs would be created but some guy on an internet message board is sure that he's lying and it would only be a few hundred jobs?  Why would the CEO make such a claim if the gap was actually that big?

I work in this industry.  He's probably quoting things like construction jobs putting the plant together.  It simply doesn't take much in the way of humans to make electronics.  

The vast majority of the projects i'm in now are finding ways to automate the flow, and take people out of the mix.  

 

[NutterButter]

Keep in mind that he spoke to reporters after the holiday party.   Who knows how many mai tais the gou knocked back.  

 

[GoBirds]

https://www.bloomberg.com/news/articles/2017-01-22/foxconn-weighs-7-billion-u-s-factory-with-apple-nikkei-says?cmpid=socialflow-twitter-business&utm_content=business&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social

Foxconn Technology Group Chairman Terry Gou told reporters in Taipei the company is considering a joint investment with Apple Inc. for a display manufacturing facility in the U.S., according to a report by the Nikkei Asian Review.

The facility would cost more than $7 billion and may create an eventual 30,000 to 50,000 jobs, the publication cited Gou as saying. The rising demand for larger displays makes domestic U.S. production a better solution than shipping from China and “Apple is willing to invest in the facility together because they need the (panels) as well,” he said. Apple didn’t immediately respond Sunday to a Bloomberg News request for comment.

Foxconn, also known as Hon Hai Precision Industry Co., is also planning a new molding facility in the U.S., possibly in Pennsylvania, Nikkei reported. Separately, Smart Technologies, a Foxconn-controlled interactive display company in Canada, may move to the U.S. in light of President Donald Trump’s indication he may seek to alter terms of the North American Free Trade Agreement, Nikkei reported Gou as saying.
Gou said he sees American protectionism as “inevitable” while questioning whether U.S. consumers will be willing to pay much higher prices for equipment of equal quality, according to Nikkei. The publication said Gou spoke to reporters after Foxconn’s holiday party in the Nankang district of Taipei.

Dude, I can't take all this winning. 

 

[GoBirds]

What?  The actual president of foxconn says 30k to 50k jobs would be created but some guy on an internet message board is sure that he's lying and it would only be a few hundred jobs?  Why would the CEO make such a claim if the gap was actually that big?

So you are leaning towards what the CEO of the company says over the message board dude flexing in his pic?

 

[Dedfin]

My alternate fact reference sheet says this will actually cause 40,000 jobs to be lost.

 

[culdeus]

So you are leaning towards what the CEO of the company says over the message board dude flexing in his pic?

lol, that's not me it's a mildly famous youtube star.

 

[GoBirds]

lol, that's not me it's a mildly famous youtube star.

Haha was gonna say pretty aggressive move....but didn't want to mess with you if you are that jacked. 

 

[Ilov80s]

I know little about this niche of manufacturing but the numbers and trends do point to the need for anti technology and anti robot policies to really bolster American manufacturing.

 

[HellToupee]

lol, that's not me it's a mildly famous youtube star.

who he

 

[James Daulton]

I know little about this niche of manufacturing but the numbers and trends do point to the need for anti technology and anti robot policies to really bolster American manufacturing.

That policy would match up perfectly with the anti science anti education stance of Trump and his supporters.

 

[Jobber]

That policy would match up perfectly with the anti science anti education stance of Trump and his supporters.

It's either this or a form of minimum livable wage. Perhaps a mix of both. Or you risk tens of millions of able bodied adults sitting idle, and poor. And angry.

 

[joffer]

good if it comes to fruition, but I hate Foxconn.  The day I toured that factory I died a little inside.

 

[culdeus]

who he

Bro science life on YouTube. 

 

[AAABatteries]

Should be a lot of nice jobs

Thanks William Grey Walter!

 

[Mister CIA]

who he

BroScience. If you'really just now discovering this guy, I envy you.

 

[Long Ball Larry]

What?  The actual president of foxconn says 30k to 50k jobs would be created but some guy on an internet message board is sure that he's lying and it would only be a few hundred jobs?  Why would the CEO make such a claim if the gap was actually that big?

the actual president of the USA says whatever the hell he wants, whether there is any basis in reality or not.  Why should the president of FoxConn be any different?

 

[MaxThreshold]

the actual president of the USA says whatever the hell he wants, whether there is any basis in reality or not.  Why should the president of FoxConn be any different?

That's a terrible comparison to justify your jab at Trump.  Big fail, LBL.

 

[Long Ball Larry]

That's a terrible comparison to justify your jab at Trump.  Big fail, LBL.

my jab at Trump?

 

[Tub of Goo]

Trump getting more done for the economy in a week and people are suggesting he has no plan?  Our leader is on a mission to put America first.  

 

[NutterButter]

 pretty soon we're going to have enough job announcements to cover one month of population growth

 

[Ilov80s]

Trump getting more done for the economy in a week and people are suggesting he has no plan?  Our leader is on a mission to put America first.  

Obviously very early in the markets, but the dollar is down and yen is rising. Asian stock news says that their investors are concerned about the protectionist policies and that investors are seeking safer currencies. Economics is super complicated and there is a lot to watch to see how this works out. It's a huge shift. 

 

[Long Ball Larry]

All new jobs are belong to trump.

 

[ren hoek]

I know little about this niche of manufacturing but the numbers and trends do point to the need for anti technology and anti robot policies to really bolster American manufacturing.

I'm guessing you are kidding here, but this is like the horse carriage industry lobbying for anti-combustion engine policies in the 1900s.  This line of thought just invites early adopters of robotic manufacturing to wipe out the US on production/cost.  

 

[Ilov80s]

I'm guessing you are kidding here, but this is like the horse carriage industry lobbying for anti-combustion engine policies in the 1900s.  This line of thought just invites early adopters of robotic manufacturing to wipe out the US on production/cost.  

I am kidding and not kidding. I am serious that technology is the thing that has done the most damage to manufacturing jobs. I am definitely kidding about anti robot/anti tech policies. 

 

[Dedfin]

Thanks William Grey Walter!

Nice reference.  Are you a writer for Archer?

 

[AAABatteries]

Nice reference.  Are you a writer for Archer?

I wish - love that show.

I'M COMING FOR YOUR BARRY!

PHRASING 

 

[BassNBrew]

good if it comes to fruition, but I hate Foxconn.  The day I toured that factory I died a little inside.

####ers stole everything we did.  We put a dummy marking into one of our mold designs and it was there on their product a year later when they were in full production.