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Taiwanese iPhone manufacturer Foxconn is considering a $7 billion joint investment with Apple to establish a display manufacturing facility in the United States, it was reported on Sunday.

According to the Nikkei Asian Review, journalists who attended Foxconn's annual end-of-year party quoted chairman Terry Gou as saying that Apple is seeking to invest with the firm in a U.S. facility, which will eventually create 30,000 to 50,000 jobs.

The increase in demand for larger display panels makes local production a better solution than shipping from China to the U.S. market, Gou told reporters. In addition to the proposed display facility, Gou said Foxconn plans a new molding facility in the U.S., with the state of Pennsylvania earmarked as a possible location following investment discussions with local officials.

Gou also said that Smart Technologies, a Foxconn-controlled interactive display startup based in Canada, may move south of the border, after U.S. President Donald Trump signaled a possible renegotiation of the North American Free Trade Agreement.

foxconn.jpg

According to reports, Gou said that the rise of U.S. protectionism was an inevitable consequence of the Trump administration, but questioned whether American consumers would be willing to pay significantly more for products as a result.
"In the future they may be paying some $500 more for U.S. products, but those do not necessarily work better than a $300 phone," he said, after urging U.S. authorities to provide concessions on land and electricity to facilitate Foxconn's manufacturing operations.

"Yes, we will continue to add to our investments in China," Gou told reporters. "China is the world's biggest market, and why should we turn down the biggest market?"
Foxconn's facility in Zhengzhou, China, produces over 100 million iPhones every year. Taking into account production from Taiwan and Hong Kong, China was responsible for more than 19 percent of Apple's global revenue in the fourth quarter of 2016.

Rising tension between the U.S. and China could benefit Gou, say people familiar with the tycoon's style. "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.

Earlier this week it was reported that Foxconn was planning a new facility next to Apple's forthcoming research and development center in the southern Chinese city of Shenzhen. "Foxconn will not leave. Foxconn will stay in China," Gou told reporters in Guangzhou, when asked whether he plans to move existing manufacturing sites to the United States.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: iPhone Manufacturer Foxconn Mulling $7 Billion U.S. Display Factory Investment With Apple
 
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hashholly

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Oct 13, 2008
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I love the idea of more American jobs, but i do not like the idea of an even more expensive iPhone to make it happen. Ultimately bringing back these jobs to America will only work out if companies are willing to take less of a profit to keep prices the same, and not pass on the higher labor costs onto consumers.
 

pat500000

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Jun 3, 2015
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I'll let quality speak for itself. Who made iPhone 7? Foxconn? Yeah..I'm hearing hissing from those products. You ain't gonna raise no price. Let's see if ya willing to make Mac pros.
 
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jerry16

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Sep 12, 2016
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Separately, this has zero to do with Trump, but watch stumpy fingers try to take all credit if it happens, as he uses his hands to hyponitise the masses.

How exactly are you sure this has zero to do with Trump? I don't recall any rumors of US based iPhone component production prior to this election cycle. The article even infers it is related to Trump with the bit on US protectionism.

It's as if people are actually afraid Trump may do a few good things for the US.
 
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KPOM

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Oct 23, 2010
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MacRumors-Apple CEO speaks!

Separately, this has zero to do with Trump, but watch stumpy fingers try to take all credit if it happens, as he uses his hands to hyponitise the masses.

Ahem:
Gou also said that Smart Technologies, a Foxconn-controlled interactive display startup based in Canada, may move south of the border, after U.S. President Donald Trump signaled a possible renegotiation of the North American Free Trade Agreement.
 

Kaibelf

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Apr 29, 2009
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They should put this in coal country and train the people there on 21st century jobs rather than 19th century ones. Win/win.

1. These factories will largely be robotic.

2. Train these people on what exactly? How to suddenly know how to work as hardware and software engineers and robot maintenance workers instead of digging coal from the ground? The talent would certainly need to come from outside the area, but the candidates wouldn't want to live there because it's a pit.

3. How many job would this create? 200?
[doublepost=1485132887][/doublepost]
I cannot believe anyone believes manufacturing labor cost represents a substantial part of final cost of iPhones. Yeah, maybe an iPhone will cost $20 more. Big deal.

I cannot believe you think that the cost of labor in the US is anywhere near as low as elsewhere.
 

thekev

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Aug 5, 2010
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If not labor then what? Too many regulations?

If the cost of labor is meaningless why did so much manufacturing move to China?

Manufacturing was much less automated in the 1970s when the Chinese economy really began to move into manufacturing. A full cost analysis today would be completely different, even compared to the early 2000s. China maintains some control in this regard, because a lot of rare earths and other materials come from China.

I cannot believe you think that the cost of labor in the US is anywhere near as low as elsewhere.

You misrepresented the guy's post. He specifically referred to labor as a percentage of overall costs. It's not as simple as stating that wages in China are lower when cutting labor costs by 50% does not necessarily mean that profits will double.
 
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JonathanK81

macrumors 6502a
Feb 7, 2006
594
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I was just about to post this too. As others have said, are we really trying to spite our own country, by hoping Trump fails?

How someone can view this as a bad thing regardless of where you fall on the political spectrum is just the prime example of something that deserves a facepalm.

Sadly, some people would rather see our President fail, instead of wanting what's best for the country. I don't care who our President is; Trump, Clinton, Sanders, it could have been any of them. I do care about my country. And would want whatever is best for it. This looks like a positive in my mind. Long term, who knows, but right now, it looks good, and we certainly can use some positives right now.
 

Foggydog

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Nov 8, 2014
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That last big resort in Vegas built by MGM, cost about 7 billion. But that resort is bringing in millions of dollars daily to pay for itself. (Of course, Dubai) bought into it as well.

A 7 billion dollar factory has to get paid for by someone, and unlike gamblers, high end shoppers, and high end rooms, the cost will have to be passed on I would venture.
But of course Tesla's giga factory is costing around 5 billion and it's supposed to reduce the cost of manufacturing batteries.
Unless Foxconn, will be able to manufacture for other companies, I don't see the cost of the iPhone coming down.

Another thought, what city has 30-50,000 people available to work in this huge factory. Does any city in America have that many out of work at this time? This isn't 2008 when cities like Vegas literally had over 100,000 unemployment.
(Please don't quote me on the number), just for reference.
Oh yes, they said they would like to build in the middle of Pennsylvania. No way in gods green earth will they find 30 thousand much less than 50 thousand in the middle of that state.
 

thekev

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Aug 5, 2010
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Another thought, what city has 30-50,000 people available to work in this huge factory. Does any city in America have that many out of work at this time? This isn't 2008 when cities like Vegas literally had over 100,000 unemployment.
(Please don't quote me on the number), just for reference.
Oh yes, they said they would like to build in the middle of Pennsylvania. No way in gods green earth will they find 30 thousand much less than 50 thousand in the middle of that state.

I would have expected them to pick a cheaper state or one with a lot of existing tech employees, such as Texas.
 
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2010mini

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Jun 19, 2013
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How exactly are you sure this has zero to do with Trump? I don't recall any rumors of US based iPhone component production prior to this election cycle. The article even infers it is related to Trump with the bit on US protectionism.

It's as if people are actually afraid Trump may do a few good things for the US.

Just like how the wall in Germany didn't come down because The Gipper said "...tear this wall down..." Decisions like this this will happen no matter who is in office.

Here is a fun fact. Presidents really don't have anything to do with the economy. They take credit when it is doing good. And get blamed when it is doing bad. Congress is the one responsible for much of what happens in the economy.
 
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