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Rumor: Foxconn May Establish Factories in USA

By - Source: DigiTimes | B 41 comments

There's a rumor that Foxconn is looking to set up North American factories to focus on LCD TVs.

DigiTimes is the source of the latest Foxconn rumor, reporting that the China-based contract electronics manufacturer, also known as Hon Hai, is planning to build factories in the United States. Currently Apple's prized iPhone manufacturer is evaluating cities such as Detroit and Los Angeles as potential camps.

Unnamed "market watchers" informed DigiTimes that, because Apple's smartphones and tablets are so difficult to make, the company needs these North American-based plants to focus on LCD TV production. These factories will reportedly be highly automated and easier to manage.

Whether news of North American Foxconn factories is true or not remains to be seen. Many times these DigiTimes articles are a hit or miss, and Time has even pointed out that "16 of these 25 [tech] stories turned out to be mostly or completely off-base. Five are largely or entirely correct. And four involve predictions that might yet come true."

Yet even if Foxconn is planning to build factories in the US, wouldn't it make sense that they'd focus on Apple's products instead of LCD TVs? Not necessarily if these American factories are heavily automated. Remember that many Americans are without jobs because it's cheaper for big-name corporations to use workers overseas.

That said, Foxconn could potentially make less money building iPhones and iPads here in the States using local workers, thus charging Apple more who in turn would charge consumers more for their favorite gadgets. An automated solution for making Apple's devices seems to be out of the question given their "difficulty" to manufacture.

However the current Foxconn rumor is seemingly backed by Foxconn chairman Terry Guo who reportedly said at a recent public event that the company is planning to launch a training program for US-based engineers.

According to Guo, these "students" will be brought to Taiwan or China and taught how to communicate in Chinese and given first-hand experience in the manufacturing process. They won't remain overseas indefinitely – Guo said they'll return to the States with "training that can be helpful". Currently the company is in talks with the Massachusetts Institute of Technology (MIT).

Does this mean Foxconn is getting future workers ready for its North American-based manufacturing plants? Time will tell if the DigiTimes story is right on the money, or another miss.


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Top Comments
  • 23 Hide
    nuvon , November 9, 2012 12:16 AM
    Ok Americans, it is your turn to jump off the building....
  • 23 Hide
    Inferno1217 , November 9, 2012 12:11 AM
    Will they deploy nets between buildings?
  • 17 Hide
    ddpruitt , November 9, 2012 12:23 AM
    This is about as believable as Apple letting users freely jailbreak Iphones and installing MacOS on any computer.
Other Comments
    Display all 41 comments.
  • 23 Hide
    Inferno1217 , November 9, 2012 12:11 AM
    Will they deploy nets between buildings?
  • 23 Hide
    nuvon , November 9, 2012 12:16 AM
    Ok Americans, it is your turn to jump off the building....
  • 17 Hide
    battlecrymoderngearsolid , November 9, 2012 12:20 AM
    Who will work for those wages?
  • 12 Hide
    jojesa , November 9, 2012 12:22 AM
    I will pay more, if necessary, for USA made phone, tablets, laptops, etc.
  • 17 Hide
    ddpruitt , November 9, 2012 12:23 AM
    This is about as believable as Apple letting users freely jailbreak Iphones and installing MacOS on any computer.
  • -5 Hide
    john_4 , November 9, 2012 12:28 AM
    Last time I checked the USA has no current capacity to build any of this stuff anymore. But it is good news if it is true.
  • 11 Hide
    sixdegree , November 9, 2012 12:34 AM
    Just remember to allocate couple hundred billions dollars to fend off the lawsuits from various interest groups and other entities, Foxconn. Welcome to USA.
  • 13 Hide
    sacre , November 9, 2012 12:35 AM
    lol oh look its already happening, the US is turning into China. Low wages, long hours, massive factories. I would be surprised if they shipped chinese over and had them work for low wages in the factories.

    The hell is going on
  • 9 Hide
    john_4 , November 9, 2012 12:36 AM
    battlecrymoderngearsolidWho will work for those wages?

    Lots of Americans are willing to work for a fair wage but it's when the leach unions move in (siphon off millions in union dues and fees) then demand $40 an hour with full benefits and tons of paid vacation time for someone sitting there twisting screws into a plate, that ruins it for sure and one of the reasons so many companies have left the USA. No company in it's right mind would not put up with that. Over the top government regulations from the EPA to OSHA and over the top (was the highest, maybe second now) tax rate in the world. 3 of the main strikes saying to any business that it isn't worth it to manufacture in the USA any more.
  • -5 Hide
    Kami3k , November 9, 2012 12:42 AM
    john_4Lots of Americans are willing to work for a fair wage but it's when the leach unions move in (siphon off millions in union dues and fees) then demand $40 an hour with full benefits and tons of paid vacation time for someone sitting there twisting screws into a plate, that ruins it for sure and one of the reasons so many companies have left the USA. No company in it's right mind would not put up with that. Over the top government regulations from the EPA to OSHA and over the top (was the highest, maybe second now) tax rate in the world. 3 of the main strikes saying to any business that it isn't worth it to manufacture in the USA any more.



    Oh you again with your clueless drivel.
  • 11 Hide
    A Bad Day , November 9, 2012 12:45 AM
    Quote:
    Remember that many Americans are without jobs because it's cheaper for big-name corporations to use workers overseas.


    And automation. Why employ 100 blue-collar assembly line workers when 5-10 trained engineers are only needed to keep the machines humming?
  • 2 Hide
    A Bad Day , November 9, 2012 12:55 AM
    sacrelol oh look its already happening, the US is turning into China. Low wages, long hours, massive factories. I would be surprised if they shipped chinese over and had them work for low wages in the factories.The hell is going on


    We don't need low wages. But we also don't need large amount of workers to run automated factories, just some engineers with college degrees.

    And I find it amusing and sad that some of my classmates think they're going to get far into life without a college degree. Dream on.
  • 0 Hide
    ipwn3r456 , November 9, 2012 1:05 AM
    So where are you going to get those people who will work at your wages? Illegal immigrants from china?
  • 3 Hide
    A Bad Day , November 9, 2012 1:21 AM
    ipwn3r456So where are you going to get those people who will work at your wages? Illegal immigrants from china?


    Beep. Boop. Maggots. And I'm here to take your job, because I will work 24/7 with proper care and without pay, won't strike, and won't complain until something breaks.

    Beep. Boop.

    *Linux has stopped responding because some lazy idiots had set the firewall to allow all incoming/outgoing traffic instead of setting exceptions to certain stuff, and ignored the news of SQL attacks on companies such as Sony.*
  • 1 Hide
    Anonymous , November 9, 2012 1:23 AM
    HAHA

    INSOURCING, JUST LIKE THEY PREDICTED WOULD HAPPEN IN THE MOVIE 'THE CAMPAIGN'
  • 6 Hide
    slabbo , November 9, 2012 1:25 AM
    hypocrites, Foxconn wants to bring jobs here, and you guys are all like, no thanks. This isn't a bad thing, it sure beats the hell out of working at McDonald's. I for one welcome this. As long as the unions stays out of this it will be beneficial to everyone involved.
  • 2 Hide
    Anonymous , November 9, 2012 1:25 AM
    Assembly of the phones is such a small piece of the overall product. Yet that is all people seem to think of -- iPhone assembly.
  • 5 Hide
    matt_b , November 9, 2012 1:25 AM
    ipwn3r456So where are you going to get those people who will work at your wages? Illegal immigrants from china?

    LOL there's already plenty scattered within the states as it is. So long as they pick SOCAL, Arizona, New Mexico, or Texas, they're guaranteed to find plenty of labor for cheap. Truth is, I can laugh at this all I possibly can, but the issue pisses me off too much. Sure would be nice to have somewhat of a textile/manufacturing industry again, but the country has made other countries appear much more worthwhile for business.
  • 1 Hide
    Shin-san , November 9, 2012 1:57 AM
    Inferno1217Will they deploy nets between buildings?
    Nope, because we have Spider-man
  • 0 Hide
    sacre , November 9, 2012 1:59 AM
    A Bad DayWe don't need low wages. But we also don't need large amount of workers to run automated factories, just some engineers with college degrees.And I find it amusing and sad that some of my classmates think they're going to get far into life without a college degree. Dream on.


    Im in school for "Aviation Maintenance Technician" and let me tell you the paying wage straight out of college on average is between 90K to 110K a year. Its a hard program, but 2 years of college to earn that? I think your classmates are right. College can lead to a fulfilling and high paying career.
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