Foxconn reportedly planning operation expansion in US

With Foxconn reportedly planning to expand a part of its portion in the U.S., other key chain supply manufacturers however likely show the same interest.

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Highlights

    • Foxconn plans to expand its operation in the U.S.
    • Apple asks Foxconn & Pegatron to inspect the probability of manufacturing Apple units in U.S.
    • Other Apple chain suppliers likely willing to make a shift.

Foxconn Technology Group, Apple’s major manufacturer of Apple Inc.’s iOS devices reportedly planning to expand its operation in the U.S.

According to a report from Wal Street Journal, the Taiwanese electronics manufacturer said, “We can confirm that we are in preliminary discussion regarding a potential investment that would represent an expansion of our current U.S. operations.”

However, the other supply chain manufacturers of Apple’s products are likely willing to make a move in this direction. As per the report from 9to5 Mac (as being posted by the Chinese publication qq), the manufacturers are turning down this proposition due to high labor and operation costs in the U.S.

Furthermore, the report adds that Lens Technology, one of the suppliers of cover glass used in iPhones, claims that it will not establish production lines in the U.S. Although the power and land cost are considerably lower in the U.S. as compared to China, company’s key decision of not switching lies in its labor supply.

A supply chain maker in Shenzhen, anonymously said that the existence of a complete chain in China has allowed the companies to make quick respond and adapt to changes and problems.

As the newly elected U.S. President, Donald Trump stated during his campaign that he “will get Apple to build its computers and things” and offered tax incentive for the same, company’s CEO, Tim Cook however, said that this step would increase the expenditure due to the dearth of labour in the country.

But despite such minimal possibility, Apple has still asked Foxconn and Pegatron to inspect the probability of manufacturing Apple units in the United States.

Foxconn along with Pegatron Corporation and Wistron Corporation are the key contractors that assemble Apple products across six factories in China, including one in Brazil.