Apple Jobs In America: Manufacturing iPhones In U.S. Is Uncertain Foxconn Chairman Says
The chairman of Apple supplier Foxconn Technology Group raised some concerns regarding the Taiwan-based company’s manufacturing expansion plans in the U.S., Nikkei reported Thursday.
Foxconn chairman Terry Gou told reporters at a ceremony marking the start of the construction of an $8.8 billion display plant in Guangzhou, China that he had just returned from Washington without confirming he met with anyone from President Donald Trump’s administration.
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In December, the company confirmed to International Business Times its exploration of an expansion in the U.S. saying they were in “preliminary discussions regarding a potential investment that would represent an expansion” of current operations in the country.
Foxconn’s expansion plans came after criticism from Trump over U.S. companies’ manufacturing of their products overseas. Trump vowed to implement a 45 percent tariff on goods made in China, where many Apple products and parts are made.
However, the company’s chairman raised uncertainties over previous plans because he wasn’t sure U.S. officials could work quickly enough to attract foreign investors like Foxconn to build large facilities in the United States.
"I am concerned as to whether the U.S. can resolve all the investment issues in only a few months' time," he said, adding that the United States also lacks the skilled labor and comprehensive supply chain the display industry needs.
"Does the U.S. offer incentive programs for foreign investors? They'll need to pass bills first, and we'll need to wait for American authorities to make a decision first," Gou added.
Apple and Foxconn Manufacturing: U.S. VS. China
Trump strongly criticized China for stealing American jobs throughout his presidential campaign. Now, Foxconn seems to be stuck between the U.S. and China, with Gou strongly avoiding siding with a country.
"I am not willing to choose between [the U.S. and China]. Why should I give up on any market?" he said.
"It is in the interest of the entire humanity that China and the U.S., the top two economies in the world, can get along peacefully," Gou added. "They are in the process of gambling with each other, and I can foresee that the two will eventually work together to grow [their] economies and deliver beneficial outcome for many. If they don't, then everyone will be losers."
Apple, which accounts for over 50 percent of Foxconn’s revenue, previously said the U.S. did not have enough skilled workers for the manufacturing of iPhones.
Read: Trump Says Apple CEO Tim Cook Has 'Eyes Open' To US Production, Wants To Do 'Something Major'
"Even if Trump imposes a 45 percent tariff, it is still possible that manufacturers will decide to continue production overseas as long as the costs together with the tariffs are lower than the amount they need to spend on building and running production lines in the U.S," said Apple CEO Tim Cook in an interview with CBS last year.
However, in January, Trump said he spoke to Cook about making iPhones in the U.S., adding that the CEO has his "eyes open to it."
Meanwhile, a Reuters report found Foxconn lost its bidding ground for Toshiba Corp's memory chip business because of its close ties to China. The Japanese government is concerned about the "transference of key technology" if the winning bidder has a close relationship to China, sources close to the matter told Reuters.
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