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Your Next Giant LCD Could be Made by Foxconn in USA

By - Source: The Wall Street Journal | B 24 comments

Foxconn is talking about building plants in North America and Indonesia.

During Foxconn's 40th anniversary gathering, chairman Terry Gou told employees that the company plans to relocate some of its manufacturing away from China to its biggest market, the United States. He said many customers and partners have even asked Foxconn to build American factories.

Currently, Foxconn is investigating the possibility of manufacturing liquid display screens larger than 60 inches here in the States, as it's difficult to ship those panels to the U.S. from Asia. Foxconn has also set its sights on Indonesia thanks to rising costs and the labor situation in China.

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

A prior report stated that 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 seek out 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.

News of Foxconn wanting to build TVs in North America isn't anything new. Sources confirmed in November 2012 that an unknown number of American factories would focus on LCD TV production instead of Apple hardware. These factories will reportedly be highly automated and easier to manage.

Kuo Ming-Chi, an analyst at Taipei-based KGI Securities, told the Chicago Tribune on Sunday that Foxconn is looking more closely at the U.S. in order to move closer to some of their biggest clients. "Obama is also really pushing to return manufacturing to America and boost employment opportunities," he said.

Foxconn has production facilities in more than 10 countries including China, Turkey and Mexico. Gou told employees on Sunday that in order to diverse Foxconn's manufacturing base, Indonesia will need to be a key production site.

Gou also said that the company is shooting for 15 percent revenue growth in 2014.

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  • 3 Hide
    Blazer1985 , January 28, 2014 5:44 PM
    The real news here is that production cost is increasing in china and the labor situation is getting a little better. Good news.
  • 0 Hide
    tobalaz , January 28, 2014 6:12 PM
    So... Where in the US are we going to receive a gracious increase in the suicide rate?
  • 0 Hide
    deadmeow , January 28, 2014 6:22 PM
    I will never buy their slave made products.
  • -7 Hide
    tului , January 28, 2014 6:37 PM
    Quote:
    I will never buy their slave made products.
    Well if they're made in the US, they won't be.Although I would prefer an American made product by an American company than from some Chang Chong corporation.
  • 4 Hide
    Jgriff , January 28, 2014 6:54 PM
    @deadmeow chances are you already have...and will continue to do so. They are the number 1 manufacturer in consoles and apple products as well as many of the oem motherboard brands.
  • 0 Hide
    blueflippyflop , January 28, 2014 6:57 PM
    #chatticonvalley/#Bring it to the manufactering capital of the *coughCoughsoutheastern.. USA, Chattanooga tn
  • 0 Hide
    blueflippyflop , January 28, 2014 6:58 PM
    #chatticonvalley/#Bring it to the manufactering capital of the *coughCoughsoutheastern.. USA, Chattanooga tn
  • 0 Hide
    popatim , January 28, 2014 7:03 PM
    I doubt any serious work would be done here. American works would want $10/hr minimum instead of the $10/wk they get over there.... LoL
  • 0 Hide
    firefoxx04 , January 28, 2014 7:44 PM
    foxcon has parts in a lot of stuff. good luck avoiding them.. lol
  • 2 Hide
    oj88 , January 28, 2014 8:35 PM
    @popatim: $10/wk must be the wage of 20 years ago. Current wage in China is ~$150/wk, and ~$200/wk for high skilled workers, lol. In the eyes of capitalists, it is all about cost. In the past 10 years, China's average labor cost has been tripled, so has the transportation cost across the Pacific Ocean. Thus it makes sense to move the heavy items manufacturing back to the States, where the market is. Same practices are also applied to Japanese, Korean and German car manufacturers. On the other hand, light and high-margin items like iPhones can still afford to be made in China.
  • 2 Hide
    hotroderx , January 28, 2014 8:39 PM
    Quote:
    I will never buy their slave made products.
    chances are if you own anything that plugs in and is electronic then it has Foxconn parts in it
  • 0 Hide
    kaiten5 , January 28, 2014 11:16 PM
    Quote:
    Quote:
    I will never buy their slave made products.
    Well if they're made in the US, they won't be.Although I would prefer an American made product by an American company than from some Chang Chong corporation.
    I admire that you want to support American jobs but you don't have to be such as racist with your comment
  • 0 Hide
    iam2thecrowe , January 29, 2014 12:56 AM
    Quote:
    Quote:
    Quote:
    I will never buy their slave made products.
    Well if they're made in the US, they won't be.Although I would prefer an American made product by an American company than from some Chang Chong corporation.
    I admire that you want to support American jobs but you don't have to be such as racist with your comment

    I dont think he was trying to be racist, i think its just a typeo. there really is a TV brand called Changhong.
    http://changhong.com.au/products/television/smart-tv/
  • 0 Hide
    spookyman , January 29, 2014 5:53 AM
    So Chattanooga? Bet they only will pay the great Americans min wage for the work done.
  • 0 Hide
    Leonbojangals , January 29, 2014 9:43 AM
    Watch one factory will be in far southern texas and employee illegals from mexico.
  • 0 Hide
    Dax corrin , January 29, 2014 10:50 AM
    Cool.. people can plummet to their deaths from factories here in the US now too.
  • 0 Hide
    IndustryStandard , January 29, 2014 11:37 AM
    I find it funny that Terry Gou and Kuo Ming-Chi have the same last name, but completely different spellings. As for the topic at hand, maybe Foxconn can buy downtown Detroit and turn it into Shenzhen #2. Minimum wage is better than no wage and an apocalyptic wasteland.
  • 0 Hide
    gm0n3y , January 29, 2014 12:56 PM
    Quote:
    So... Where in the US are we going to receive a gracious increase in the suicide rate?
    The funny thing is, if you crunch the numbers, Foxconn workers in China are actually LESS likely to commit suicide than the national average. Sure they may have a 'high' number of suicides, but they have hundreds of thousands of employees. So on a per employee basis the rate is low overall.I came to this conclusion (when I ran the numbers last year) by taking the overall number of suicides per year at Foxconn (which was published in a Tom's article sometime a while back), divided by the number of employees. Then I compared this value to the average rate in China that I could find online. So not exactly scientific, but overall a decent picture of what is actually going on. Now if you look at specific 'problem' factories then maybe there are places with far higher rates.
  • 0 Hide
    popatim , January 29, 2014 3:21 PM
    Quote:
    @popatim: $10/wk must be the wage of 20 years ago. Current wage in China is ~$150/wk, and ~$200/wk for high skilled workers, lol.


    Actually the last I heard Foxxconn paid their factory workers $350/Month and that salary was much higher than the avg. Too bad this is still below the minimum wage in the USA. Things must have really escalated for them to actually be considering a plant here. Usually the do so only to ease import restrictions or appease our government. For example car manufacturers are limited on how many cars they can import here unless they also have a plant here. LoL
    (My Gti is 1% American and I was told by a vw rep that the 1% is actually a handful of bolts so they could bring more in. lmao)

  • 0 Hide
    stevejnb , January 29, 2014 5:49 PM
    You know, I do find the people talking about slave labour and all that a bit unrealistic. They get $150, $250, $350 a month or whatever it is and that's horrible, right? Well, if it's so horrible, why aren't they looking for a better job? Simply put, because that IS the good job. The company offering that worker $350 a week is the one that is offering them more than they could get elsewhere.

    Still think it's horrible? Ok. In order to improve things, someone needs to offer them a job that pays them better wages. Since you're obviously really upset about it, why not offer to let them compete for your job - then when they offer to do it for a dollar less per hour and no overtime or health benefits and your arse it out on the street, you can feel very righteous. Sound good?

    It's not that I'm insensitive to the plight of these people and that I don't wish better for them... It's more that, this ineffectual stomping of feet and holding of breath and righteous outrage typed from "slave" made keyboards on "slave" made computers while we all live our cushy western world jobs while blowing our excess money on crap we never came close to needing is ridiculous. What's more ridiculous is, after our little tantrums, expecting others to do something about it while we continue supporting the system that makes it possible with our cushy lifestyles - but HEAVEN FORBID someone take away my iPhone/Android/Surface/GEForce whatever/Asus this/Samsung that/etc etc.

    When you talk about this like your opinion is worth a damn, ask yourself, what have you done to change this? I mean, really done, other than do the internet equivalent of throwing a tantrum, all the while supporting the status quo where it really counts, with your credit card when you're buying something from the checkout? I doubt many of you who seem upset by "slave labour" and whatnot are more than talk.
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