Daily Management Review

Foxconn Chairman Gou Says The Company Plans 'Capital-Intensive' U.S. Investment


04/30/2017




Foxconn Chairman Terry Gou said as he exited the White House that the company is planning a "capital-intensive" investment in the United States. Foxconn is the world's largest contract electronics manufacturer and a major Apple Inc supplier.
 
Foxconn operates large manufacturing facilities in China, which is a base for its assembly of Apple's iPhones and the company was formally known as Hon Hai Precision Industry Co. it has been some time that the Taiwan-based company has been eyeing U.S. investments.
 
building on his campaign focus on preserving and creating American jobs, several announcements about U.S. investments by both foreign and domestic manufacturers have been made by U.S. President Donald Trump since his election in November.
 
Since Trump had already departed the White House for a trip to Atlanta by the time the Foxconn chairman emerged and spoke with reporters outside, it was unclear if Gou had met personally with Trump.
 
"We are planning a number of investments in America,” Gou said. "This project will include both capital-intensive and skilled labor-intensive and high-tech investment."
 
With an investment that would exceed $7 billion, Foxconn was mulling setting up a display-making plant in the United States, Gou has said in January.
 
Gou said he wanted that to be a White House announcement when asked how much money he plans to invest.
 
"We're still not final yet," he said. “I think we will share with you in the summer, maybe a few weeks."
 
"I don't want to say yes or no. After we select the location, the White House will make an announcement," Goud said when asked if he had met with Trump.
 
Including Vice Chairman Tai Jeng-wu, who is also chief of Japan's Sharp Corp, in which Foxconn holds a two-thirds stake, Gou also visited the White House on Thursday, along with senior company executives.
 
Wooing them in some cases and pressuring them in others, Trump has urged Foxconn and other companies to create U.S. jobs.
 
He planned $50 billion in investments in the United States, said billionaire Masayoshi Son, the head of Japan's SoftBank Group Corp, when he met Trump in December.
 
A decision to shift Carrier air conditioner production to Mexico from Indiana needed to be reversed or import duties were to be faced by United Technologies Corp, Trump had earlier demanded. Carrier received state tax breaks and agreed to retain jobs in Indiana.
 
Pressure on Ford to cancel a new small-car plant in Mexico was also exerted by Trump. The automaker said the decision stemmed from declining sales of small Ford Focus models in the United States and abandoned that plant.
 
"We can confirm that we are engaged in discussions with officials at various levels of government regarding our ongoing plans to significantly increase our investments in the United States," Foxconn said in a statement after Gou spoke.
 
Toshiba Corp's chip business is intended to be acquired by Foxconn. However the company is considered a U.S. security risk due to ties with China, where Foxconn employs about 1 million people, sources have earlier said.
 
(Source:www.reuters.com)






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