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Foxconn is Now Expanding Pennsylvania Facility

By - Source: IDG News Service | B 12 comments

Foxconn plans to expand its Pennsylvania facility by hiring on 500 workers to manufacture products.

Last week, Foxconn Chairman and President Terry Gou admitted to the Asian press that the company is actively looking into the possibility of setting up factories for manufacturing high-end smartphones and tablets in the United 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.

Now Foxconn Technology Group announced that the company plans to spend $30 million over the next two years to expand its current office located in Harrisburg, Pennsylvania, including hiring on 500 new employees. The company also plans to provide $10 million to Carnegie Mellon University in Pittsburgh to help in robotics research.

The IDG News Service reports that Foxconn is taking advantage of President Obama’s push to move the United States into advanced manufacturing. The report states that Foxconn's Terry Gou, who has been visiting the U.S. as part of a Taiwanese trade delegation, wants to establish a "high value" production base in the nation that will use automation.

As previously reported, Foxconn believes it can find a highly skilled workforce here in the States. Problem is, these workers will require larger wages than the over one million individuals sweating in Foxconn factories over in China. To solve this, the company 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.

Previously the Harrisburg facility focused on research, but now there’s indication that this plant will actually begin manufacturing high-end products. These will reportedly go beyond the consumer space, and into other sectors like automotive and medical. Bringing more high-end manufacturing to America will actually lower Foxconn’s manufacturing and transportation costs, a price savings that could be seen by consumers.

The IDG News Service also reports that Foxconn is exploring the possibility of building plants in Arizona to manufacture display panels. The company is also considering “technology partnerships” in Virginia and New Jersey. There’s a good chance Foxconn could even consider North Carolina as well, as that’s where Lenovo set up shop earlier this year to manufacture notebooks and desktops.

Last year a Foxconn representative said that Americans want to see their products manufactured locally. Motorola has taken the hint, and purchased a facility in Texas to produce the current Moto X smartphone. Google plans to manufacture the Glass HMD locally next year, and Apple is trying to relocate more of its manufacturing within the United States as well.

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  • 1 Hide
    JohnPMyers , November 27, 2013 6:35 PM
    "and Apple is trying to relocate more of its manufacturing within the United States as well."

    Actually Foxconn manufactures iGizmos for Apple.

    Anyway, maybe Foxconn's suicide rate will be lower in Pennsylvania ;) 
  • 1 Hide
    glupoi652 , November 27, 2013 7:05 PM
    Are they going to install suicide nets here too or is that just a China thing?
  • 0 Hide
    vaughn2k , November 27, 2013 7:57 PM
    Kudos to Foxxcon.. more job locally... ;) 
  • 0 Hide
    eklipz330 , November 27, 2013 9:55 PM
    "The company also plans to provide $10 million to Carnegie Mellon University in Pittsburgh to help in robotics research."

    cheap labor will go the way of the dinosaur
  • 1 Hide
    Afrospinach , November 28, 2013 1:01 AM
    "Anyway, maybe Foxconn's suicide rate will be lower in Pennsylvania ;)  "

    Considering the actual rate of suicide for the foxconn plant was actually lower than the US general populace I would not hold my breath. The media just go a hold of a number and decided it was interesting.
  • 1 Hide
    JohnPMyers , November 28, 2013 1:12 AM
    Quote:
    "Anyway, maybe Foxconn's suicide rate will be lower in Pennsylvania ;)  "

    Considering the actual rate of suicide for the foxconn plant was actually lower than the US general populace I would not hold my breath.


    That is true. But what was so alarming about it was the number of suicides occurring at the same place, nearly all by the same method, and nearly all for the same reasons.
  • 1 Hide
    rokit , November 28, 2013 3:34 AM
    "The company also plans to provide $10 million to Carnegie Mellon University in Pittsburgh to help in robotics research."
    So kids will be able to go home and see their parents, sunshine, feel the breeze and finally die peacefully with no regrets while thanking Foxconn for the best day of their life? *shred tears of joy*
  • 0 Hide
    icemunk , November 28, 2013 10:13 AM
    Funny thing is, the suicide rate at Foxconn is actually lower than all 50 US states (per 100,000 people).
  • -2 Hide
    m32 , November 28, 2013 5:16 PM
    You guys are joking too much about the "suicide" thing.
  • 1 Hide
    Stevemeister , November 29, 2013 2:07 PM
    Low cost countries are getting higher in cost . . . its Japan all over again. . . . just 40 years later. Hiring in Shanghai is no longer that cheap.
  • 0 Hide
    COLGeek , November 30, 2013 4:57 PM
    Globalization is a good thing, and in this case, especially for the potential workers in the PA job market.
  • 0 Hide
    nhat11 , December 2, 2013 5:58 AM
    What's pannsylvania? lol