Foxconn Technology Group has said they are seeking to expand their North American operations as more customers request their products be stamped “Made in the U.S.A.”
“We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there,” Louis Woo, a Foxconn spokesman, said in a phone interview. He declined to comment on individual clients or specific plans.
Foxconn, based in Taipei, employs 1.6 million workers globally, with factories already in California and Texas. Those facilities make partially-assembled products such as servers.
Apple, who just happens to be Foxconn’s biggest client, plans to spend more than $100 million next year on Mac production in the U.S.
“Supply chain is one of the big challenges for U.S. expansion,” Woo said. “In addition, any manufacturing we take back to the U.S. needs to leverage high-value engineering talent there in comparison to the low-cost labor of China.”
Foxconn chairman Terry Gou said last month that he wants to bring U.S. engineers to Asia to train them in manufacturing, before deploying them in the U.S.
Foxconn has more than 1.5 million workers scattered around China. The company benefits from having suppliers based nearby, allowing more flexibility, and cutting delivery times and costs. However, some parts, such as processors and glass used in phones, are made here in the U.S.
It will be interesting to see what becomes of this “Back to the U.S.A.” push by manufacturers such as Foxconn and Apple. MacTrast will keep you informed every step of the way.