Foxconn Gives Sharp the Lead on $7 Billion U.S. Manufacturing Plant

Discussion in 'Politics, Religion, Social Issues' started by MacRumors, Feb 8, 2017.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Following weeks of reports and speculation on the potential opening of a United States-based factory built by Apple suppliers Foxconn and Sharp, a report from Reuters today states that Sharp is "taking the lead" on a $7 billion plant in the U.S. that was initially outlined by parent company Foxconn. The plant will break ground sometime in the first half of 2017.

    The timing of the news coincides with Japanese Prime Minister Shinzo Abe's incoming meeting with President Donald Trump, the driving force behind the recent glut of U.S. iPhone manufacturing news. In a phone call with Apple CEO Tim Cook in December, Trump said it will be a "real achievement" for his Presidency when he gets Apple to shift device manufacturing stateside.

    Sharp previously cited interest in building U.S. plants for LCD panel construction for TV sets and home appliances. Foxconn's rumored U.S. plans are more closely aligned with Apple through a proposed $7 billion joint investment with the Cupertino company, which would potentially lead to a display manufacturing facility in the country. Sharp now appears to be spearheading that project.

    According to people familiar with the matter, PM Abe will present a plan to create more than 700,000 jobs through U.S.-based operations and include a variety of manufacturing companies, as well as Foxconn and Sharp. As usual, a Sharp spokesperson said that no official decision has yet been made on building a factory within the U.S.

    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: Foxconn Gives Sharp the Lead on $7 Billion U.S. Manufacturing Plant
  2. mozumder macrumors 6502a

    Mar 9, 2009
    Those 700,000 jobs are temporary construction jobs or are overseas. For high-tech products, the U.S. plants would be highly automated, maybe employing 1,000 people. They won't be like the old plants that employ 50,000 people.

    Sorry kids, but those massive factory jobs are never coming back to the US. Americans priced themselves out of the labor force, and you shouldn't punish consumers with higher prices in order to support American workers. If you want handouts because you can't compete, ask for handouts. Don't punish the poor and the retirees on fixed income by raising their prices through tariffs.
  3. Sasparilla, Feb 8, 2017
    Last edited: Feb 8, 2017

    Sasparilla macrumors 65816

    Jul 6, 2012
    Politically smart to do considering the current Administration prior statements (both its antagonistic focus on Apple previously, but also its talk of non insignificant tariffs on stuff from China - raise our iPhone prices by a 20% tariff and Apple's sales will tank).

    Would also expect the current admin to issue a secret order (with accompanying gag order on vendors) for back-dooring of OS's and devices for government access "for national security" (this would not be an if, but a when for the current Admin IMHO - if the prior one didn't do it already considering how nice things got after the FBI dust-up). The vendors would be unlikely to complain, even without a gag order, since their sales would literally drop through the floor overnight if word got out.

    Wish Apple made their OS and hardware ROM source available for experts to look through and monitor (to prevent just such a circumstance).
  4. eltoslightfoot macrumors 6502a


    Feb 25, 2011
    Still, is it not better to have the long-term jobs (probably more than a thousand, but you are correct in your idea--if they weren't so automated, it wouldn't be cost effective to have them here) in the USA?
  5. s2mikey macrumors 68020


    Sep 23, 2013
    Upstate, NY
    They arent coming back because companies are too cheap and stingy to support the workforce and its a race to the bottom. Its called sucking the shareholder knob. We used to have factories here and people made decent livings. Then, at some point a miserable Wall-Street grinch said enough and that was the end of that.

    And NO, unions are NOT the answer either. Companies just did it because it was right.
  6. pat500000 Suspended


    Jun 3, 2015
    If it was automated machines doing the work, it wouldn't be considered jobs, wouldn't it? I don't believe this is going to be temporary jobs.
  7. Crosscreek macrumors 68030


    Nov 19, 2013
    The majority will be temp construction. Automated plants still need a support staff but very few.
  8. H3LL5P4WN macrumors 68000


    Jun 19, 2010
    Pittsburgh PA
    So how much is this weekend at a private location going to cost us tax payers due to security, transportation, and whatever Lord Dampnut decides to bill himself, err, us?
  9. satchmo macrumors 68020

    Aug 6, 2008
    Wasn't plans to build a plant in the US, in the works many years ago?
    I'm sure Trump will claim otherwise.
  10. mozumder macrumors 6502a

    Mar 9, 2009
    It's not companies that are stingy. It's people like YOU that are stingy, because YOU don't want to pay $1,200 for an iPhone to support US manufacturing.

    Don't blame companies, when it's people like YOU that are at fault.
  11. 0007776 Suspended


    Jul 11, 2006
    If they are planning to break ground this year then yes they were. Plans like that don't come together overnight, and if they do then they are probably skipping some important steps in the design and engineering.
    --- Post Merged, Feb 8, 2017 ---
    It's both, you also didn't use to have such insane margins on consumer products.
  12. konqueror4u macrumors regular


    May 18, 2016
    Programmers Heaven
  13. tennisproha macrumors 65816

    Jun 24, 2011
    Just for the record, this was long in the works. This has more to do with automated precision manufacturing. The Mac Pro has been manufactured in Austin since it debuted a few years back. Bringing back this new era of manufacturing is actually an initiative the Obama administration started. Like others have stated, manufacturing ain't like it used to be b/c Americans don't wanna do those jobs.
  14. coolbreeze macrumors 68000


    Jan 20, 2003
    And some will continue to find the negative in this. Or claim any US job was already "in the works" under Obama.


    Gee sorry, I happen to support our President despite it not being "cool" on the internet.

  15. iReality85, Feb 8, 2017
    Last edited: Feb 8, 2017

    iReality85 macrumors 6502a

    Apr 29, 2008
    Upstate NY
    Except your analysis is exceptionally one-dimensional.

    It's never 'just' 1,000 jobs added by a manufacturing plant. It's all the additional and ancillary jobs added or expanded because those 1,000 jobs are being brought in. By the way, 1,000 jobs for a high tech manufacturing plant is a rather conservative figure.

    I'll give an anecdotal- but entirely relevant- example. I live in Albany, NY. If you're from New York or have lived here within the past decade (or a tech nerd), there's a good chance you've heard of Global Foundries. GloFo is a major worldwide manufacturer of CPUs. If you've bought an iPhone, an Xbox, or a Playstation in the last several years, there's a good chance the CPU was manufactured right up the road from me.

    You can't get any more high tech than CPUs and all the processes involved in making them. Having GloFo build their Fab here added 'just' 5,000 permanent, new, well paying jobs. As in, positions directly hired by Global Foundries, so administrative, sales, procurement, engineering, etc. But there's more. Now you have to factor in the local unions, who are given labor contracts to maintain all the tools and machines, of which there are a lot of (I am involved in this part of the chain- we hire local union labor and are contracted with GloFo to maintain them). Next are the material vendors, who supply pretty important things that high tech manufacturing needs, like raw materials, noble gasses, piping- anything that goes into the final product or maintains, repairs, and adds to the existing infrastructure of the Fab.

    But wait, there's more! GloFo is good at building CPUs, but not really good at building Fabs. So in order for the Fab to be built, they contracted the work out to an architectural firm capable of building state-of-the-art manufacturing facilities. Enter M+W, which is based in Germany. But Germany and the US are pretty far apart (and that's bad for logistics), so what did M+W do? They brought all of their workers into the area and set up permanent shop here. And since then, New York State also chose them to engineer and construct all their Nanotech Science buildings for SUNY, because hey why not. So even more jobs.

    Lastly, since all these new jobs, expanded jobs, and billions of dollars have flowed into the area over the last decade, people of course have to have something to spend their money on. So you have retail chains moving in, fancy food stores, new entertainment (many of which I thought I'd never see around here), and all of which require jobs themselves. More new jobs! And all these new people moving into the area require places to live, and builders are still having a hard time keeping up with demand for new apartment and housing developments.

    All from 'just' 5,000 permanent new jobs at a new plant.
  16. dampfnudel macrumors 68040

    Aug 14, 2010
    Brooklyn, NY
    Exactly, companies don't care about the social instability that will result/is resulting as they push more people into a meager existence. A lot of people do everything they can to improve their lot in life, but with "forces beyond their control" exerting a downward pressure on them almost all the time, it's very difficult to overcome, more than it should be, more than it used to be.
  17. 8281 macrumors 6502

    Dec 15, 2010
    The "onshoring" trend, at least as I understand it, is being driven by automation. Companies are willing to invest in manufacturing within the US because the assumption is that within a short period of time, most of those jobs will be done by robots anyway.

    Something like 85% of manufacturing jobs were lost to technology, not offshoring. The steel industry is a perfect example. They were able to maintain the same level of production while cutting their workforce by 75%.

    Unfortunately, rather than think of some creative solutions or otherwise take the lead on solving this issue, politicians have decided to use nostalgia as a means to mislead people for their votes.
    --- Post Merged, Feb 8, 2017 ---

    I think you're missing the mark. Manufacturing jobs, like those that millions of people worked in during the 50s, 60s, and 70s, are never coming back because we just don't need that many workers to produce our stuff. Other than builders, which are skilled trades people anyway, all of those jobs you mentioned are all high-skilled, high paying positions. People in small town USA are not going to fill those jobs. And even if they did fill those positions, there wouldn't be enough of them anyway.
  18. DrewDaHilp1 macrumors 6502a


    Mar 29, 2009
    All Your Memes Are Belong to US
    I'll take a 1,000 American workers vs 50,000 foreign workers.
    --- Post Merged, Feb 8, 2017 ---
    About the same as Obamas vacations and Bushs and Clintons.
  19. Septembersrain Contributor


    Dec 14, 2013
    I'll pay more. The way I see it is if there are more jobs, less unemployed. So more money to put back into the economy right?
  20. Rocketman macrumors 603


    You just gave a narrative to describe the real world effect of increasing the velocity of money. From zero to hero starting somewhere and expanding from there.
  21. Dekema2, Feb 8, 2017
    Last edited: Feb 8, 2017

    Dekema2 macrumors 6502a


    Jul 27, 2012
    WNY or Utica
    SUNY Poly also started building a $1bn factory for Austrian Microsystems outside of Utica, NY, but it was recently cancelled for unknown reasons.

    I spent a few years in that town, it is a depressed place. They have been trying to lure a "chip plant" for decades now to no avail (I could literally hear the bulldozers from my window). But like I said, the education is there (it's an engineering school), the infrastructure is there (I-90 and I-790, railroads), and tax breaks would obviously be given.

    I will be the first in this thread to suggest that Foxconn build their factory in Marcy, NY. Now if you can tell me why Utica is a bad place for such a plant (you seem to be more knowledgeable about Tech Valley stuff than me), please do.

  22. M2M macrumors 6502


    Jan 12, 2009
    But corporations like it even more to charge You 1200USD and still keep production costs down as little as possible. Also year by year Apple is "forced" to increase its revenue or otherwise its called doomed.
  23. Michaelgtrusa macrumors 604

    Oct 13, 2008
  24. Huntn macrumors P6


    May 5, 2008
    The Misty Mountains
    Automation will be the challenge all modern countries will have to deal with. It may be a near future employment crisis. However if you intent is to cast some kind of blame on high priced American workers, like it was their fault, then I'll describe this argument as callous and desingenious.

    Huh? Who do you work for, what industry do you work in? Are you in management? If Apple wants to charge $1200 for a phone, they also have to calculate what this will do to their marke against the likes of their competitions n like Samsung.
  25. macs4nw, Feb 8, 2017
    Last edited: Feb 8, 2017

    macs4nw macrumors 601


    Ah yes, the trickle-down effect. And new jobs are a reason for a great new optimism for local communities.

    But even if the net-new jobs weren't that numerous, local manufacturing, i.e. non-dependence on other countries for manufactured goods, is healthy for the country's self-worth, as well as environmentally beneficial.

    That's already a win-win. It also really bothers me, that 70-80% of what I buy, says "Made in China" on the packaging. No offense to the hard-working Chinese people.

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