Hon Hai, Foxconn invests $40 million in US manufacturing
Hon Hai Precision Industry Co, otherwise known as Foxconn, plans to invest $40 million into manufacturing links in the United States.
The Apple supplier will invest $40 million in the U.S. state of Pennsylvania, as reported by Reuters. Over the next two years, $30 million in investment will go towards hiring 500 employees in Harrisburg, Pennsylvania to build a "high-end supply chain," and $10 million will be forwarded to develop robotic technology with Carnegie Mellon University.
Company chairman Terry Gou said:
"Investing in the U.S. is not for manufacturing for specific brands as speculated in the market. We are here to build a high-precision, high-tech and high value-added manufacturing industry."
The Taiwanese firm, commonly known as the main creator of Apple products including the iPhone and iPad, also said this month it was considering the possibility of building a manufacturing plant in Arizona to develop large display panels for the U.S. television market. In May, the manufacturer set up a research and development (R&D) facility in Japan, following its acquisition of a 38 percent stake in Sharp's television panel plant in Sakai, Japan last year.
Through these investments, Hon Hai appears to be trying to diversify its manufacturing business and create additional revenue streams. Hon Hai generates most of its profit from Apple through the production of the iPhone and iPad -- although smaller rivals such as Pegatron are also snapping up contracts from the tech giant.