Donald Trump Threat May Prompt iPhone Maker Foxconn to Build $7 Bn Factory in U.S.

It is a well known fact that President Donald Trump has been targeting China as the main cause for lost manufacturing jobs in the United States. But his repeated threats around high import tariffs could actually be having tangible effects now.

Taiwan-based iPhone manufacturer Foxconn has recently revealed that it is contemplating building a factory in the United States. The investment has been estimated at $7 billion.

Most of Foxconn’s factories are located in China. The company, formerly called Hon Hai Precision Industries Co. Ltd., could be looking at cutting potential import tariffs for the United States by bringing some of their manufacturing on-shore.

In March of last year, Foxconn completed its acquisition of 114-year-old Japanese electronics company Sharp Corporation. The Sakai-Ku, Sakai-based company’s display unit could be the focal point of Foxconn’s possible investment in the United States.

If that’s the case, then we could see some portion of subsequent iPhone display components being manufactured in the United States, presumably to serve the home and nearby markets.

The bulk of Foxconn’s manufacturing will continue in its factories in China, but the U.S. unit could help eliminate the tariff factor from the equation, specifically for devices sold in that market.

At this point, we have no information about when they might start investing in the United States, but if things move fast on the legislation front it may be sooner rather than later.

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