|

Foxconn Factory Potentially U.S. Bound

NO RATINGS
View comments: newest first | oldest first | threaded
Ariella
User Rank
Supply Network Guru
Re: Only if automated
Ariella   1/26/2017 5:45:07 PM
NO RATINGS

@Pablo all true, and there is a lot we don't know about if and how this will work out. I think it is possible they would get a waiver on tarrifs for imported components in recognition for the benefit of the jobs created in the US by the factory.  CNN 's report takes a very optimistic view with its report entitled, "Apple supplier Foxconn could create 50,000 jobs in U.S." money.cnn.com/2017/01/23/technology/foxconn-us-jobs-investment-apple/ As it says:

Over the weekend, Foxconn's billionaire chairman, Terry Gou, filled in some of the gaps in the plan.

He told reporters that the plan to build a plant for displays was still very tentative, but if it went ahead the investment would exceed $7 billion and could create 30,000 to 50,000 jobs, according to news reports.

 

Pablo Valerio
User Rank
Blogger
Only if automated
Pablo Valerio   1/26/2017 1:40:07 PM
NO RATINGS

Ariella, many years I worked for a motherboard and server manufacturer in San Jose, CA. 

The company was founded by Taiwanese engineers and most of the manufacturing was done in Taiwan and China. They had, however, a few high-end products built in the US, but only expensive motherboards that didn't require any human assembly.

If Foxconn opens a factory in the US, which has been suggested several times, it will most likely be higly automated, and run by robots. 

As noted in your article, manufacturing costs have dropped in the US, but there is no way it can't compete with labor costs in China. 

The proposed 45% tariff could be an incentive to manufacture there, only if components are not subject to tariffs. Otherwise the difference would be minimal.



More Blogs from Ariella Brown
Although automated cars are stealing most of the headlines, automated transport over water may become a reality within just a few years.
Bosch made headlines for wanting to serve the smart car industry, but the news promises to make big ripples to procurement pros buying for connected products of many kinds.
Technology can point the way to more visible, better managed, and more efficient supply chains that deliver better value for companies and their customers.
Microsoft's Azure cloud platform is intended to enable Maersk to pursue its goal of digital transformation and advance its strategy “of becoming the global integrator of container logistics.”
As large OEMs use more sustainable energy, the practice is trickling down to suppliers on the next tier as well.
Twitter Feed
EBN Online Twitter Feed
EBN Dialogue / LIVE CHAT
EBN Dialogue enables you to participate in live chats with notable leaders and luminaries. Open to the entire EBN community of electronics supply chain experts, these conversations see ideas shared, comments made, and questions asked and answered in real time. Listed below are upcoming and archived chats. Stay tuned and join in!
Archived Dialogues
Live Chat 01/15: CPOs Re-Shape Their Business Roles
Increasingly chief procurement officers (CPOs) are re-shaping their organizational role to focus on creating results far beyond cost controls. A new IBM survey explores how.
Live Chat 11/12: Examining the Cyberthreat to Supply Chains
The number of cyberattacks is on the rise and hackers are targeting the supply chain. Drew Smith, founder and CEO of InfoArmor, will be on hand to discuss the reality of today's threat landscape and what to do about it.