Why Apple’s main supplier Foxconn might want a U.S. factory

“The Apple supplier Foxconn is considering building a US-based factory for making large displays in the US, an investment that could cost the Chinese manufacturing giant over $7 billion,” JP Mangalindan reports for Yahoo Finance. “But why?”

“The answer perhaps lies in its relationship with Apple. The Nikkei Asian Review reported on Monday that a potential US plant may be a joint investment between Apple and FoxConn, which remains the largest manufacturer of iPhones and iPads. During an interview this November with The New York Times, President Donald Trump said he had a post-election phone call with Apple CEO Tim Cook in which he told Cook, ‘Tim, you know 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,'” Mangalindan reports. “‘I think we’ll create the incentives for you, and I think you’re going to do it,’ Trump added, according to the president’s own account.”

Mangalindan reports, “While it’s unclear at this time what those incentives will be, Foxconn’s move might have something to do with Trump’s repeated pledge to to impose a 45% tariff on imports from China to spur job creation and innovation stateside.”

Read more in the full article here.

MacDailyNews Take: It’ll certainly be interesting to see how the economics will work and what that will do, positively or negatively, to the cost of producing products in a U.S.-based manufacturing facility, job creation, etc.

Apple backing a big league manufacturing plant would be a huge win for President Trump – January 23, 2017
Foxconn and Apple may team to build $7 billion manufacturing facility in U.S.; could create 50,000 new jobs during President Donald Trump’s first year – January 23, 2017
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


  1. It is common for the barely informed to think that we will see automation coming soon.

    In fact automation for high volume products started before WWII in mostly simple mechanical items. In the 1970s, the advent of microprocessors mandated automation, because people could not do the required “assembly” or production work.

    If Apple & Foxconn put iPhone assembly here in the US, we will see designs modified for automated production. In fact if you look at the modifications to date with elimination of separate ear phone and power connections and then with the elimination of home buttons already announced, it is easy to see the progression that Apple already knows is coming.

    I can envision removing volume & silence buttons in the future and relying on two finger screen management of these functions. That would leave only the one mechanical Power button.

    In spite of what people think of the world as being “peaceful”, China is a top down authoritarian communist/marxist mixup state and they have been challenging countries around them in aggrressive ways like with “building” their own island in the South China Sea and claiming it as their territory & no doubt wanting to keep others out of their exclusiounary zone around the island.

    Foxconn may eventually need production facilities far removed from China to survive. I predict it will happen.

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