Foxconn Set to Expand U.S. Manufacturing Capacities

Apple to Invest $100 Million into Manufacturing in the U.S

by Anton Shilov
12/06/2012 | 11:50 PM

As some of the customers of Foxconn Technology Group are seeking to assemble more products in the USA, the world’s No. 1 contract makers of electronics is seeking to expand its manufacturing capacities in the country. While the company did not specify the names of customers interested in the U.S. assembly, the name of one is obvious: Apple. Moreover, the latter said it would invest $100 million into U.S. production capacities.

 

“We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there. Supply chain is one of the big challenges for U.S. expansion. 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,” said Louis Woo, a Foxconn spokesman, in a phone interview with Bloomberg news-agency.

In order to assembly personal computers and other electronics in high volumes the U.S., Foxconn will need to train engineers at its plants in China and then bring them back home. In addition, new assembly lines have to be built. To fund the U.S. manufacturing effort, Apple will spent $100 million, a considerable amount of money. As it appears, the project includes a lot more than just assembly.

“We are really proud of [bringing manufacturing back to the U.S.]. We could have quickly maybe done just assembly, but it is broader because we wanted to do something more substantial. So we will literally invest over $100 million. This does not mean that Apple will do it ourselves, but we will be working with people, and we will be investing our money,” said Tim Cook, the chief executive of Apple, in an interview with BusinessWeek.

Foxconn has factories in California and Texas, but it is unknown where it plans to make the new Mac computers. In addition, it is unclear what kind of volumes are expected to be made in the United States.