Foxconn is allegedly considering a $7 billion investment to establish a display manufacturing unit in the United States in partnership with Apple.
The companies have reportedly agreed on this collaboration based on the findings of the R&D department, which has determined the higher demand for large display panels.
The best way to meet this demand was by creating opportunities for local production as this would facilitate quick production and avoid any shipping from China to the United States.
With most of its iDevices manufactured in China, Apple is now supposedly looking forward to the prospect of manufacturing its products in the home country by setting up a U.S. display factory.
Bringing Better Prospects
Foxconn apparently revealed its plans in a news conference following its annual year-ending party as shared by the publication Nikkei Asian Review.
A journalist attending the conference reportedly quoted Terry Gou, the Chairman of Foxconn, as saying that Apple is looking for a collaboration where it shall be investing a major chunk for establishing a factory. In addition, this establishment will provide 30,000 to 50,000 job opportunities.
Foxconn's chairman further revealed that display startup Smart Technologies, which is located in Canada and controlled by Foxconn, may be shifted to the United States.
The Trump administration is looking to step up efforts to offer more jobs to Americans and has already indicated that Apple would benefit if it manufactured its products in the United States.
In November 2016, it was reported that Trump wants Apple to shift its manufacturing process to the United States.
However, whether the consumers will be willing to pay for the high-priced products owing to higher labor costs remains to be seen.
"In the future they may be paying some $500 more for U.S. products, but those do not necessarily work better than a $300 phone," said Gou.
He also requested the U.S. authorities to provide land and electricity concessions to facilitate manufacturing operations.
Foxconn Will Exit China?
Reportedly, Foxconn produces over 100 million iPhones per year at its Zhengzhou facility in China. The smartphone production from Hong Kong and Taiwan accounted for over 19 percent of Apple's revenue generation in Q4 2016.
Industry sources have also divulged that Foxconn may benefit from the rising feud between the United States and China.
"Foxconn is known to leverage different provinces and countries against each other for better terms," shared the source.
The display manufacturer, however, will not exit China, revealed Gou when quizzed on the proposed shift to a U.S. production facility.
