Apple Supplier Foxconn Plans Expansion in U.S.
December 07 2016 - 4:00AM
Dow Jones News
BEIJING—Foxconn Technology Group, which manufactures Apple
Inc.'s iPhone and other products, said it is in talks to expand in
the U.S. The statement comes amid President-elect Donald Trump's
push for a return of manufacturing to the U.S.
Foxconn said the size and scope of its potential U.S. investment
hasn't been determined.
"We can confirm that we are in preliminary discussions regarding
a potential investment that would represent an expansion of our
current U.S. operations," the Taiwanese electronics manufacturer
formally known as Hon Hai Precision Industry Co. said
Wednesday.
Foxconn's core business is electronics assembly, and Apple its
biggest customer. But Foxconn has been investing in diverse
high-tech sectors including robotics, e-commerce, consumer-tech
startups and health care. It wasn't immediately clear which sector
Foxconn is targeting for U.S. investments.
Foxconn's statement came a day after Japan's SoftBank Group
Corp. Chief Executive Masayoshi Son met with Mr. Trump in New York
and pledged to invest $50 billion in the U.S. Foxconn's logo
appeared beside SoftBank's on the piece of paper that Mr. Son held
while speaking to reporters.
Mr. Son and Foxconn Chairman Terry Gou are longtime friends.
SoftBank and Foxconn have collaborated on several investments,
including on a joint venture last year with Alibaba Group Holding
Ltd. to sell the Japanese company's humanoid robot, Pepper.
Industry analysts say Foxconn could move some targeted parts of
its manufacturing business to the U.S., but it likely isn't
feasible to move iPhone production back in a large way. The U.S.
has far higher labor costs and lacks the integrated supply chain
that has developed in China.
(END) Dow Jones Newswires
December 07, 2016 03:45 ET (08:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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