The Strategist

Trump: Foxconn will invest $30 bln in the US

08/02/2017 - 13:42

Chairman of the Board of Foxconn Terry Gou is considering a possibility of increasing investment in the US to $ 30 billion, said US President Donald Trump.

Foxconn Technology Group, the main supplier of hardware to Apple, said last week that it plans to build a $ 10 billion liquid crystal display factory in Wisconsin. The company intends to hire 13,000 people for this project. Trump regards this step as a natural result of his slogan "America first". However, this was only the beginning, the US president said at a meeting with representatives of small business in the White House on Tuesday.

"They (Foxconn) are going to spend $ 10 billion, but he is one of the biggest businessmen of our time," Trump said. "And I think the figure will be $ 30 billion."

"He told me in private that he thinks he can make an investment of $ 30 billion. Think about it, he can go on an investment of $ 30 billion, but he told me this unofficially, so I promised that I will not tell anyone," Trump said to the audience, laughing.

It is not clear whether he meant Gou's intention to invest in a factory for the production of liquid crystal displays, or in the country as a whole. Last month, Trump told The Wall Street Journal that Head of Apple Inc. Tim Cook promised him to build three large manufacturing plants in the US. Then the US president also did not disclose any details.

"Our investment in Wisconsin will be the first in a series of facilities that we will build in several states as part of a robust electronics ecosystem in the United States," Foxconn said in a statement. "We have not yet announced our investment plans for other locations. We will announce it as soon as we finish these plans. "

Taiwanese Hon Hai Precision Industry (known by the Foxconn brand) is the world's largest contract manufacturer of electronics. The company’s founder recently announced his intention to invest billions around the world, including investments of $ 5 billion in India.

July 27 in Milwaukee, Wisconsin Governor Scott Walker and Terry Gou signed a memorandum of investment of $ 10 billion in construction of a factory for production of liquid crystal (LCD) displays.

"This project implies the largest in the history of the United States investment in creation of jobs for 13,000 people with an average salary of $ 53,900 per year." In the next four years, 16,000 workers will be needed to build the company, and the preconditions for securing 22 thousand jobs in related areas will be created as well, " the governor said in a statement.
According to him, a plot of land with an area of 185.8 thousand hectares in the southeast of Wisconsin has been allocated for the plant. As Walker noted, this will be the first production of LCD displays in North America.

To implement this plan, Foxconn Group expects to attract American Apple and Japanese Sharp. As noted by observers, Foxconn’s plans in the US market are linked to the policy of US President Donald Trump on creation of new jobs in the country.

Hon Hai Precision Industry (Foxconn) is the world's largest contract manufacturer of electronics, fulfilling orders including for Apple. In April 2016, the Taiwanese corporation acquired a 66% stake in Japanese manufacturer Sharp. Hon Hai is headquartered in Taiwan, but its factories are mostly located in mainland China.