Nikkei Asia Group reported today that Foxconn, Apple’s key supplier might be close to starting a manufacturing facility in US. The company is planning a $7bn manufacturing facility in US to produce display units.
Although the facility will be highly automated, it is expected to add about 30,000 to 50,000 new jobs
“Apple is willing to invest in the facility together because they need the [panels] as well,” Terry Gou, chairman of Foxconn technology group told reporters after the company’s annual year-end party in the Nankang district of Taipei.
The increase in demand for larger display panels makes local production a better solution than shipping from China to the U.S. market, Gou told reporters.
Gou said that Foxconn is also planning a new molding facility in the U.S., with the state of Pennsylvania a possible site following investment discussions with local officials.
The partnership with Apple is critical for Foxconn as the company tries to position its manufacturing facilities in alignment with Apple’s strategic needs.
Digitimes, reported last week that the company was planning to expand manufacturing operations in Shenzen China, close to the Apple’s R&D facility.
Foxconn has been operating two large-scale industrial parks in Shenzhen, one serving as an R&D and testing center for new products.
Foxconn is also currently developing wireless modules in Shenzhen, which will seek orders from Apple for its next-generation iPhone products, said the report.
The planned new plant in Shenzhen indicates that Foxconn will continue to commit new investment in China despite the company’s plan to set up an the new 8.5G LCD production plant in the US.