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Foxconn Factory Potentially U.S. Bound
1/26/2017

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Ariella
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Supply Network Guru
Re: Only if automated
Ariella   7/27/2017 9:21:44 AM
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@Pablo According to the reports that came out yesterday (see money.cnn.com/2017/07/26/technology/business/foxconn-wisconsin/index.html) it is happening.

The firm will invest $10 billion in Wisconsin to build a new manufacturing plant that produces LCD panels. The project will create 13,000 new jobs and should be completed by 2020, according to Wisconsin Gov. Scott Walker.

Foxconn's estimate on jobs was more conservative. In a statement, the company said the project will create 3,000 jobs with the "potential" to generate up to 13,000 new jobs.

Foxconn announced the investment from the White House. 

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
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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.



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