Feeds

Foxconn mulls US expansion as States compete for business

China's getting too pricey for Taiwanese tat assembly titan

Top 5 reasons to deploy VMware with Tegile

Contract manufacturing giant Foxconn could be set for a major expansion into the US, although not with the low-cost, labour intensive factories that have defined its presence in China.

Chairman Terry Gou told reporters at the group’s annual Chinese New Year party on Sunday that “the US is a must-go market”, according to Reuters.

Crossing the Pacific wouldn’t just get the company closer to big name clients such as Apple, Amazon and HP, opening up potential new revenue opportunities, but also plays to president Obama’s push to bring more manufacturing jobs back to the States.

Gou told reporters the Taiwanese giant needs to expand out of China because of rising wage costs, increasing labour unrest, squeezed margins and greater competition in the Middle Kingdom.

However, it’s not going to be able to replicate its China model in the US, where representatives from at least Six states have apparently been jostling to get the firm to set up factories in their backyard.

These include Arizona, Colorado, Texas, New York and New Jersey, Foxconn spokesman Simon Hsing told Bloomberg.

If the company did decide to expand Stateside it would have to be for highly skilled manufacturing such as LCD panel production, Gou apparently said.

One location which Foxconn could roll out its low-cost, labour intensive model is Indonesia, where wages are rising more slowly than in many parts of China. It would have the added bonus of being in one of the world’s fastest growing mobile phone markets.

Although there’s no official word yet from Foxconn, the government there has claimed it could invest up to $US10bn over the next 5-10 years.

However, wages only form one small part of the total manufacturing cost and Foxconn is still investing heavily in China.

Any expansion to other geographies can probably be viewed as a spreading of risk and a complement to, rather than replacement of, current activities in the Middle Kingdom.

Foxconn couldn’t immediately be reached for additional comment. ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.