Foxconn planning US Expansion on the Heels of Apple Announcements on U.S. Production Investment

Foxconn workers

As news broke that Apple is going to invest $100 million to bring some Mac production back to the U.S., Foxconn has announced that it is planning U.S. expansion. Related? Yeah, that’s a fair bet.

It doesn’t take Sherlock Holmes or the crew from CSI to put the pieces together here. Foxconn makes most of Apple’s products. Apple is investing in U.S. production with other people, and Bloomberg is reporting Foxconn has plans for the U.S. too.

Louis Woo said to Bloomberg: “We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there…”. However, there are challenges to supply chains that cannot be overlooked:

“Supply chain is one of the big challenges for U.S. expansion,” Woo said. “In addition, any manufacturing we take back to the U.S. needs to leverage high-value engineering talent there in comparison to the low-cost labor of China.”

When you can literally have component parts being made next door or around the corner from you, changing that model to having to ship components across the ocean makes being nimble—challenging.

Make no mistake, we doubt that these announcements aren’t related, so it will be interesting to watch in 2013 what develops on the U.S. manufacturing (or mac-ufacturing) side of things.

  • http://www.facebook.com/THExREALxTACO Jeremy Taco Patterson

    I wish Huntsville, AL would go after this factory. We ALMOST got the Volkswagen factory that went to Chattanooga, TN. We are supposed to be getting an Audi factory in a few years. I would LOVE to be the guy leaking photos from the Apple plant to iPhoneHacks! LOL!

  • m Arch Tom’s on Bar N Ass

    COMMENT:
    i don’t buy that Trish ! this all story sounds like media coverage for branding awareness, did U get paid well to write such a whole pile of “bullshit” ?
    UNITED STATES are well known for they sell boxes and this is what we like to hear, project design in the states , manufacturing in Asia to allow or make them grow and develop, then packaging design back in the states and assembling in whatever hub for the market. (i remember there is plant where they can assemble in cork, ireland , i can’t tell what the product is though) this story doesn’t make sense i cannot think of any american getting up in the morning to join a production line. you don’t really buy stories like SILKWOOD FILE (1983) do You? a portrait of americans working at a plant , by simply using common sense instead and then looking into deep a bit, we can all get to understand they were not americans but immigrants with american performing arts artists playing a role. marc