Foxconn’s plans for a US manufacturing location

An article in the Wall Street Journal titled “Foxconn Weighs Plan for US Plant” (January 27,2014) describes a statement by Foxconn’s chairman that the company would invest in capital intensive manufacturing in the US. He claims that the company plans to push in the direction of “automation, software and technology innovation” with the US plant being used to generate TV screens larger than 60 inches. Does the rising labor cost in China or a need to create a diversified global production footprint justify this decision ? If growth of the company in new medical products and sustainable products is important, does US manufacturing enable such growth ? Is the US a low cost producer if environmental compliance is a key requirement during production ?

About aviyer2010

Professor
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