“Foxconn Technology Group is considering building a U.S. display-making facility for upwards of $7 billion, a major investment for Apple Inc.’s main manufacturer that may create tens of thousands of American jobs during President Donald Trump’s first year in office,” Bloomberg News reports.

“The company is considering a joint investment with Sharp Corp., the Japanese display supplier it bought last year, but details have yet to be hammered out, Reuters cited Chairman Terry Gou as telling reporters in Taipei on the sidelines of a company event. Foxconn confirmed the report Monday,” Bloomberg News reports. “An investment by Foxconn, whose main listed unit is Hon Hai Precision Industry Co., would mark a victory for Trump, who’s repeatedly blasted China for stealing American jobs and devastating U.S. manufacturing.”

“Foxconn has said it’s in preliminary discussions to broaden its investment in the U.S., without elaborating. Trump has often articulated his vision of bringing manufacturing jobs back to America from China, which became the world’s factory floor thanks to cheap labor and central policy support. And he’s singled out Apple in the past,” Bloomberg News reports. “The idea took shape after Gou spoke with Masayoshi Son, chairman of SoftBank Group Corp. and a close business partner. Son, who’s announced his own plan to invest $50 billion in the U.S., asked Gou for his views. A document Son held up for reporters after a December meeting with Trump included the words ‘Foxconn’ and ‘$7 billion’ alongside SoftBank’s numbers.”

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“‘Son is a good friend,’ Gou said, adding that Son had asked for his views about investing in the United States,” Reuters reports. “Gou said he told Son that the United States has no panel-making industry but it is the second-largest market for televisions.”

Reuters reports,” Foxconn has existing cooperation and operations in Pennsylvania, which is a state Foxconn would prioritize, depending on land, water, power, infrastructure and other investment conditions, he said.”

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“‘Apple is willing to invest in the facility together because they need the [panels] as well,’ Gou told reporters after the company’s annual year-end party in the Nankang district of Taipei,” Debby Wu reports for Nikkei. “Trump, who campaigned on pledges to incentivize domestic production and impose 45% tariffs on Chinese and Mexican imports, used his inaugural address Friday to reiterate his commitment to deliver local manufacturing jobs. ‘We will get our people off of welfare and back to work, rebuilding our country with American hands and American labor,’ he said. ‘We will follow two simple rules: buy American and hire American.'”

“Gou said Sunday that he has faced no pressure from Beijing over Foxconn’s plan to increase its U.S. presence. People familiar with Gou’s style have suggested that being caught in rising tensions between the U.S. and China could even benefit the Taiwanese tycoon,” Wu reports. “‘Foxconn is known to leverage different provinces and countries against each other for better terms,’ an industry source said, suggesting Gou could pit both countries against each other as both sides courted new investments from the company.”

Wu reports, “Cook said during a December 2015 TV interview that unlike the Chinese labor force, American workers no longer had the skills to manufacture Apple products.”

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MacDailyNews Take: Potentially could help Apple avoid some import tariffs.

SEE ALSO:
Foxconn-Sharp considering LCD plant in USA, plans in response to President-elect Trump’s ‘Make in America’ call – January 13, 2017
With President Trump soon to take office, Apple looks to boost its ‘Made in America’ credentials – January 10, 2017
Make America Insanely Great Again: Apple seeks to expand Made in USA manufacturing – January 9, 2017
Apple invests $1 billion in SoftBank’s massive tech fund; may help company get in President Trump’s good graces – January 4, 2017
Apple in talks to invest $1 billion in SoftBank tech fund – December 13, 2016
Softbank to invest $50 billion in the U.S., create 50,000 new tech jobs after meeting with President-elect Trump – and Apple supplier Foxconn is in on the deal – December 6, 2016
President-elect Trump invites tech leaders to roundtable in Manhattan next week – December 6, 2016
President-elect Trump tells Apple CEO Tim Cook that he’d like to see Apple make products in the U.S. – November 23, 2016
President-elect Trump says Apple CEO Tim Cook called him after election victory – November 22, 2016
Apple could make iPhones in the U.S.A. under President Trump, sources say – November 17, 2016
Japan’s Softbank just became one of Apple’s most important suppliers – July 18, 2016