Foxconn is considering moving production of the iPhone in the US
Foxconn intends to invest in manufacture on U.S. soil, reports CNBC. According to the channel, investment, the largest assembler of Apple devices will reach $7 billion.
In November it was reported that Apple has offered its contract assemblers Foxconn and Pegatron to consider the possibility to move production of the iPhone in the United States. Foxconn responded to the request, in turn, Pegatron declined to discuss such a plan because of fears high costs for implementation.
In the factories of Foxconn annually produce more than 200 million iPhone of various models. Information about the opening of new production capacity in the USA became known after the US President-elect Donald trump and the head of SoftBank Masayoshi Dream has announced plans by SoftBank to invest $50 billion into the American economy and create 50,000 jobs.
“The volume of potential investments have not yet been determined, we will announce any plans after the completion of direct negotiations between our management and the relevant U.S. officials”, – said of Foxconn, adding that the agreement will be signed on mutually beneficial terms.
Previously elected President of the United States Donald trump said that Apple and other American companies should resume production of its products in the United States. In a telephone conversation with the head of Apple Corporation Tim cook he promised big tax breaks if it will transfer production to the United States.
“Moving production is a difficult and complicated process,” said analyst at Mega International Investment Services bill Cai, citing the need to pick up the staff, and liaising with suppliers.
Their research and development Apple is in Cupertino, but most of the products and components collected outside the United States in China, Taiwan, and other countries. The transfer of production to outsourcing to third parties and the transfer of production to other countries was initiated by Steve jobs after returning to Apple in 1996.