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Foxconn Wants To Build Tablets, Smartphones in USA

By - Source: UnwiredView | B 19 comments

Foxconn will likely manufacture high-end devices in the United States.

Late last year, Louis Woo, a spokesman for Foxconn Technology Group, confirmed that the company is looking to expand its operations in North America. The confirmation arrived after a previous report claimed that Foxconn was bringing U.S. engineers to Asia for training before sending them back to the States. Sources said American factories would focus on LCD TV production instead of Apple hardware.

Now Foxconn chairman and President Terry Gou revealed to the Asian press this week that the company is actively looking into the possibility of setting up factories for manufacturing high-end smartphones and tablets here in the States. Typically, manufacturing has been overseas because it's cheap, but the strengthening of the yuan, the growing wages in China, and the lack of skilled workers have put pressure on the company to look elsewhere.

UnwiredView cites two reasons why Foxconn wants to set camp in America: because of the Obama Administration's focus on bringing back manufacturing jobs (AKA incentives), and the highly skilled workforce the company could establish. However, the problem is that American workers will ask for larger wages, so Foxconn may offset this expense by using highly automated production tools. Thus, the company will have the same output of its Chinese factories, but with fewer workers.

According to the report, Foxconn wants to open two headquarters here in the States: one on the West Coast and one on the East Coast. These two offices will be tasked with finding locations for factories, which will only manufacture high-end devices due to the higher cost of operation. China factories will continue to manufacture lower-end devices. Arizona Governor Janice Brewer reportedly met with Gou to discuss a possible factory in her state.

Gou reportedly thinks that there are too many software companies in the United States as it is, especially on the West coast, compared to hardware designers and manufacturers. He believes that Foxconn's investments will make the nation more balanced in regards to software vs. hardware development. He also believes that innovation will likely come from the United States more so than from Taiwan.

Last year spokesman Louis Woo acknowledged that Americans simply want more of their products manufactured locally. The drawback to establishing local factories, according to Woo, is that the supply chain itself will present a challenge. "In addition, any manufacturing we take back to the U.S. needs to leverage high-value engineering talent there in comparison to the low-cost labor of China," Woo added.

Display 19 Comments.
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  • 5 Hide
    Avus , November 22, 2013 10:12 AM
    They finally mastered the Chinese slavery.. now on to the American!!!
  • 2 Hide
    emad_ramlawi , November 22, 2013 10:26 AM
    They need to replace the free suicide nets with free fast food, and that will probably work, but they wont be as fast as those Chinese, the manufacture line may get slow and bloaty.
  • 0 Hide
    Buddy Couch , November 22, 2013 10:32 AM
    It seems Obama planned on bringing back jobs, I really like that guy, problem is the jobs are for Motoman, Fanucman, add in your robot here. Maybe I don't like that guy.
  • 1 Hide
    JD88 , November 22, 2013 10:34 AM
    Not everyone can be an engineer or lawyer. If these jobs pay decent and offer healthcare, I welcome it. It's about time China shipped some jobs back over here.
  • 0 Hide
    koga73 , November 22, 2013 10:40 AM
    We call it insourcing...
  • 0 Hide
    jimmysmitty , November 22, 2013 10:51 AM
    Quote:
    They need to replace the free suicide nets with free fast food, and that will probably work, but they wont be as fast as those Chinese, the manufacture line may get slow and bloaty.


    From what I have been reading, the labor work force in China is actually starting to cost more when they are not breaking labor laws so the US doesn't seem as pricey as it used to.

    It would be good to get manufacturing jobs back here though. Back when we were a industrious and manufacturing nation there was less poverty and people know how to work for a living.

    These days people are so self involved and expect to be given everything it's sad really.
  • 0 Hide
    milktea , November 22, 2013 11:16 AM
    One company, two polices?
  • -1 Hide
    ethanolson , November 22, 2013 11:24 AM
    We won't only ask for higher wages. They won't be allowed to hire an American with lower wages because of how high our minimum wage is... compared to the Chinese.

    I hope they can hire teenagers. Our rising generation needs to build work ethic, and nothing does it like a factory.
  • 0 Hide
    ZolaIII , November 22, 2013 11:24 AM
    I am proud to be American, i will bay 600$ iPhone built by Americans (exploited Hispanic majority) for Americans because that makes me American. I will not bay those horribly bad comi-rat devices that costs 200$ that comes whit Socialist so called open community OSis bat with our fine software like iOS (BSD based)!
    So they will put in more robots & rest will be automatons...
  • 1 Hide
    littleleo , November 22, 2013 11:38 AM
    Does this mean the US suicide rate is due to rise once the Foxconn plants open in the here?
  • 0 Hide
    ihog , November 22, 2013 12:01 PM
    Either prices are going to rise or they're going to use illegal immigrants. /opinion
  • 0 Hide
    sunflier , November 22, 2013 12:24 PM
    Dang! How bad is it in China when THEY are wanting to outsource to America?
  • 0 Hide
    mmohon , November 22, 2013 12:41 PM
    This belongs here: http://www.youtube.com/watch?v=EQa4HHkhwVg

    ps....was from a comedic film, its satire.
  • 0 Hide
    lanir , November 22, 2013 1:08 PM
    I've worked for this company in the US already. Was several years ago, they were contracted to run assembly lines at an HP plant in Indianapolis. Their solution was to use all temp workers, pretend like it was all temp to hire, then fire everyone (many hundreds of people at a time) when the sales run was done. They did not pay so well.

    Their practice was to hire just about anyone off the street and then use whoever seemed to be more skilled in lines assembling more expensive hardware. There was no raise or anything involved and it might still be months between runs. The people I spoke with who had been employed there multiple times said the runs were 2-4 months on average and you could expect to be laid off for a month or two between runs.

    So basically I wouldn't recommend anyone work for this company. They're about a century behind the times when it comes to workplace ethics.
  • 0 Hide
    WyomingKnott , November 22, 2013 1:11 PM
  • 0 Hide
    XZaapryca , November 22, 2013 1:44 PM
    With China announcing they will lower their foreign currency reserves and cutting back on buying US debt, setting up some manufacturing in the US is the smart move. As the dollar gets weaker against the Yuan, imports from China will become far more expensive. The long term trend is going this direction. We're going to have to understand that no one is going to be paid $30/hr to push a broom around. In a global economy we have to be competitive.
  • 0 Hide
    sonofliberty08 , November 23, 2013 2:09 AM
    and then the US slave workers will hv to work 16 hours per day to produce smartphones that sell to the Chinese market ?
  • 0 Hide
    jalek , November 23, 2013 4:29 PM
    China and Japan have been expanding US manufacturing investment, while the US wealthy gave up on the country and sent their money overseas years ago.

    If "trickle down" ever worked, it was just to make it rain in developing nations.
  • 0 Hide
    invlem , November 23, 2013 8:36 PM
    Quote:
    I am proud to be American, i will bay 600$ iPhone built by Americans (exploited Hispanic majority) for Americans because that makes me American. I will not bay those horribly bad comi-rat devices that costs 200$ that comes whit Socialist so called open community OSis bat with our fine software like iOS (BSD based)!
    So they will put in more robots & rest will be automatons...


    What?