Foxconn, a Taiwanese based company and world’s largest OEM manufacturer is considering building a new display making factory in the United States. The investment would exceed 7 billion dollars according to Foxconn’s CEO Terry Gou’s statement on Sunday.
Foxconn, the same company who builds your iPhone or your MacBook is also world’s tenth largest employer and today’s news is nothing short of extraordinary, considering the recent trends in the industry.
Since NAFTA happened under Bill Clinton’s watch, a huge number of manufacturing jobs were lost by the United States year after year in favor of other countries, mainly China, Vietnam, India, Mexico etc, but after Donald Trump’s epic win in the presidential elections, the trend seems to have been reversed as per his campaign promises.
After President Donald Trump pledged to put America First during his official inauguration speech on Friday, Foxconn’s Terry Gou announced his company’s plans to mitigate what he called the rise of protectionism as a new trend in US politics, which may underpin economic development.
And Foxconn’s answer was exactly what Donald Trump predicted: fearing a tariff imposed on foreign made products, Foxconn will now invest over 7 billion dollars in the US economy, creating maybe thousands of jobs in the process and making America great again.
Foxconn will build the new display factory together with its partner, Sharp Corporation, but there are many things to be negotiated first at both State and Federal levels. Formerly known as Hon Hai Precision Industry, Foxconn decided to invest heavily in the US after the company’s partner Masayoshi Son, the guy heading Japan’s SoftBank talked to Terry Gou in the aftermath of his meeting with President Trump.
Masayoshi Son vowed for a $50 billion investment in the US during his meeting with Donald Trump, mentioning en passant Foxconn and an extra 7 billion dollars investment, but he did not elaborate at the time.
Terry Gou said that despite being world’s 2nd largest market for TV sets, the US has no panel making industry and that’s quite shocking considering that America was world’s largest televisions manufacturers in the sixties.