Foxconn to expand North American operations as demand for 'Made in U.S.A.' products rises

Foxconn to expand North American operations as demand for 'Made in U.S.A.' products rises

Summary: Demand for products made in the U.S. is pushing Taiwanese component manufacturer Foxconn to expand its North American operations.

SHARE:
TOPICS: Hardware
9

Hot on the heels of the announcement by Apple chief executive Tim Cook that Apple is to manufacture some Macs in the U.S. comes the news that Taiwanese design manufacturer Foxconn is to expand its North American operations.

"We are looking at doing more manufacturing in the U.S. because, in general, customers want more to be done there," said Foxconn spokesperson Louis Woo in an interview with Bloomberg.

No further information was given as to who the customers prompting the expansion are, but among those who rely on Foxconn are big names such as Apple and HP.

See alsoGifts for iPhone 5, iPad 4 and iPad mini owners [Gift Guide 2012]

"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 currently has factories in California and Texas involved in the assembly of products such as servers.

In an interview that is scheduled to be broadcast later today on "Rock Center" on NBC, Cook unveiled company plans to move some Mac manufacturing to the U.S. next year at a cost of some $100 million.

"I don't think we have a responsibility to create a certain kind of job," Cook said. "But I think we do have a responsibility to create jobs."

"When you back up and look at Apple's effect on job creation in the United States, we estimate that we've created more than 600,000 jobs now," he added.

Apple doesn't make a secret about where its products are made. On the back of many Apple products are the words "Designed by Apple in California. Assembled in China." The company has, however, been criticized for manufacturing products abroad, and the company hasn't manufactured a single product in the U.S. since the 1990s.

Image source: iFixit.

Topic: Hardware

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

9 comments
Log in or register to join the discussion
  • It will be interesting to see how Hon Hai deals with OSHA, EPA, and NLRB.

    It will be even more interesting to see how they deal with the AFL-CIO and American attorneys. I'm glad they seem to be bringing production back to the USA, but they better understand that in this country while you can treat your workers poorly, you can't treat them like slaves.
    matthew_maurice
    • A number of articles disagree

      "Cut my pay... please!" being one of them.

      "Cut my salary, please" being another.

      "Unpaid jobs - the new normal" being another.

      Still, given the dude from Apple who once used every lame excuse in the book to not hire in America - he must be spinning to note that his favorite environmentally-unfriendly company is moving on over despite his antics.

      Let's see what happens.
      HypnoToad72
      • Did you miss your meds today?

        None of that made any sense.
        matthew_maurice
    • Walmart Style Manufacturing

      Just follow the Walmart lead, minimum wages, minimum benefits and pay minimum taxes. Locate in a poor state with right to work legislation and minimal state regulations for business. Welcome y'all.
      rod911
  • Good - It's About Time

    I just hope they hire Americans, and not import people from overseas. I know Google has made some its latest gadgets here in the U.S. too. So maybe it is a trend. We can only hope. The whole offshoring idea was bad from the start - whoever thought that up should be boxed up and shipped to India, China, The Philippines, Mexico - where ever.
    jpr75_z
    • Doubt that's a problem.

      You're not going to get H1-B visas for assembly workers.
      matthew_maurice
  • Misleadings from Apple again

    Seems that Apple is misleading all the fanbois and fangurls [again]. Reports say the recent iMacs are labeled as "Designed in California. Assembled in the USA." What they are still forgetting is that the parts are not made [entirely] in the US.
    Most/all manufacturers would use the term "Assembled in the USA with foreign components." [possibly by law]. Even then, where are these iMacs really assembled? Does Apple have a plant in the US to actually assemble them yet?
    Then Tim Cook recently said something like there aren't enough skilled workers in the US to do the assembling. How hard is it to glue a battery to a case or sodder memory to a mobo?
    Gisabun
  • Oh Goodie...

    Now we can have employees in America jumping off Foxconn's buildings due to the awful working conditions.
    Zorched
  • "Made In USA" Is A Fad

    All you have to do is put similar products side by side, one made in the US and one in China, both with the same percentage markup on their manufacturing cost, and you will see how quickly this chest-thumping patriotism evaporates when it is translated to an extra outlay in cold hard cash.

    USians can't afford to subsidize inefficient industries any more than citizens of any other country. Stick to what you do best, that's the Free Market way.
    ldo17