Hon Hai, Foxconn invests $40 million in US manufacturing

Hon Hai, Foxconn invests $40 million in US manufacturing

Summary: The Apple supplier says that its push into U.S. manufacturing is necessary to improve the quality of the supply chain.

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TOPICS: Apple, Tech Industry
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Credit: Apple

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. 

Topics: Apple, Tech Industry

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3 comments
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  • Ironic

    US firms outsource manufacturing to China and shutdown, then the China company invests in the US to expand. I wonder if they will be following the law or cutting corners and dumping toxic waste like they do in China.

    We have seen labor scams run right in the US... see AT&T and Cingular... want to off load your workforce and reduce wages, just sell the unit to another company then buy it back three years later effectively invalidating employment contracts of both companies. what did you think they were doing with this prearranged deal?
    greywolf7
    • Obviously you don't have much experience in manufacturing?

      There is no way in this day and time that any company will get away with toxic dumping! As far as less wages....I bet there are a lot of people out there that would just love to have a job. Not everyone works in IT.

      I know quite a few people that are severely frustrated over not working......

      TW
      T-Wrench
  • The free market is what people want,

    so why do the people complain only now?

    What next, somebody buys an American island, like Hawaii?

    Or did I get my chronology reversed? ;)
    HypnoToad72