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Foxconn is Serious About Manufacturing in US, Apple Indicates Will Spend $100 Million

Last month, rumors were flying that Foxconn was planning to open a manufacturing facility in the US. It appears that the rumors were true.

With clients complaining that not enough of its operations are located in North America, Foxconn is now seriously considering a push in the US. “We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there,” Bloomberg quotes Louis Woo, a Foxconn spokesman.

After openly announcing intentions to bring US engineers to China for training purposes, they have now indicated their interest to have more “Made in U.S.A.” products. Most of Apple’s products are currently produced by Foxconn, and Tim Cook has made it clear since yesterday that he plans to spend more than $100 million next year on building Mac computers in the US.

Still, this comes as a bit of a surprise, given that Foxconn has traditionally relied on the local proximity of factories and suppliers, especially at its facilities in China. According to the report, Foxconn has 1.6 million workers globally, and 1.5 million of those workers are in China.

Altering  this business model might take some time to implement, though the move could potentially bring more manufacturing jobs to the US, a particularly sore political issue in recent years. However, any such move will likely involve automated facilities rather than manual labor, the majority of labor found in Foxconn’s Chinese facilities. The impact on the US manufacturing economy would be softened by this likelihood.

Source: Bloomberg

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