Foxconn weighing US$7b factory in US with Apple, says report

The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in New Taipei City, Taiwan.
The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's headquarters in New Taipei City, Taiwan.PHOTO: REUTERS

BOSTON (BLOOMBERG) - Foxconn Technology Group chairman Terry Gou told reporters in Taipei the company is considering a joint investment with Apple Inc for a display manufacturing facility in the US, according to a report by the Nikkei Asian Review.

The facility would cost more than US$7 billion (S$9.94 billion) and may create an eventual 30,000 to 50,000 jobs, the publication cited Gou as saying.

The rising demand for larger displays makes domestic US production a better solution than shipping from China and "Apple is willing to invest in the facility together because they need the (panels) as well," he said.

Apple didn't immediately respond on Sunday to a Bloomberg News request for comment.

Foxconn, also known as Hon Hai Precision Industry Co, is also planning a new molding facility in the US, possibly in Pennsylvania, Nikkei reported.

Separately, Smart Technologies, a Foxconn-controlled interactive display company in Canada, may move to the US in light of President Donald Trump's indication he may seek to alter terms of the North American Free Trade Agreement, Nikkei reported Gou as saying.

Gou said he sees American protectionism as "inevitable" while questioning whether US consumers will be willing to pay much higher prices for equipment of equal quality, according to Nikkei. The publication said Gou spoke to reporters after Foxconn's holiday party in the Nankang district of Taipei.