iPhone Maker Foxconn Planning U.S. Expansion

Foxconn is one of Apple’s biggest contract manufacturing partners making products like the iPhone at its factories in China. Apple doesn’t make iPhones or most of its other products in the United States and it has been often criticized for that by U.S. President-elect Donald Trump who said on the campaign trail that he’s going to make the company move production back to the United States. Foxconn has now announced that it’s planning an expansion into the U.S.

In a statement provided to Bloomberg, Foxconn says that “While the scope of the potential investment has not been determined, we will announce the details of any plans following the completion of direct discussions between our leadership and the relevant U.S. officials,” adding that “Those plans would be made based on mutually-agreed terms.”

It’s unclear at this point in time how much money Foxconn will invest in the United States and how many jobs it will end up creating. It’s also unclear whether Foxconn’s U.S facilities will manufacture the iPhone.

That’s easier said than done considering the fact that majority of the component suppliers for the iPhone are based outside the United States. This is going to raise significant logistics issues and will also end up raising production costs.

The scope of Foxconn’s planned investment in the United States remains unclear at this point in time and it can’t be said with absolute certainty if Apple will start manufacturing iPhones in the United States.

Adnan Farooqui
Categories: Cellphones
Tags: foxconn