Taiwan's Foxconn Eyes Seven States for $10 Billion Investment -- Update
22 June 2017 - 11:27PM
Dow Jones News
By Yoko Kubota
TAIPEI -- Taiwan's Foxconn Technology Group, which assembles
Apple Inc.'s iPhones in China, is looking at seven states in the
American heartland to invest $10 billion or more to manufacture
flat-panel screens and related equipment.
"Over the years, manufacturing of consumer goods has shifted out
of the U.S.," Terry Gou, the chairman of the company formally known
as Hon Hai Precision Industry Co., told reporters after the
company's annual shareholders meeting Thursday. "We will bring our
advanced technology there to revive American manufacturing."
Foxconn's U.S. ambition, which Mr. Gou flagged in January, comes
amid a flurry of U.S. investments announced by Asian companies as
President Donald Trump calls for a revival of American
manufacturing.
Earlier this year, Japan's biggest auto maker Toyota Motor Corp.
highlighted its plan to invest $10 billion in the U.S. over the
next five years. Chinese companies have also been expanding their
U.S. production footprint in recent years, such as auto glass
producer Fuyao Glass Industry Group in Ohio and textile producer
Keer Group Co.
In his remarks, Mr. Gou said the company was looking at about
five states, but a company executive later clarified that to say
that seven states were candidates -- Illinois, Indiana, Michigan,
Ohio, Pennsylvania, Texas and Wisconsin. Foxconn will work together
with Sharp Corp., the Japanese electronics maker acquired by
Foxconn last year, on the U.S. plants, he said.
Foxconn also plans to build supply chains and introduce
automation technologies to its U.S. operations, Mr. Gou said. The
company will decide on more details by the end of July to early
August, he said.
Mr. Gou said he has met with three state governors, without
elaborating which ones. Governors from Michigan, Ohio and Wisconsin
have visited Japan to meet Mr. Gou, people familiar with the matter
said. A Foxconn spokesman declined to comment.
In January, Mr. Gou said he hoped to invest $7 billion in the
U.S. and has welcomed pitches from state governments. The
investment could create 30,000 to 50,000 jobs in the U.S., he has
said.
In the shareholders' meeting, Mr. Gou also said Foxconn hasn't
given up on its efforts to buy Toshiba's memory-chip unit, which
the Japanese electronics maker is seeking to sell for some $20
billion to stay afloat. A day earlier, Toshiba said it had chosen
as its preferred bidder a consortium that includes a Japan-backed
investment fund and a state-owned bank.
"We still have a chance," Mr. Gou said.
Tai Jeng-wu, executive of Sharp and a Foxconn senior executive,
criticized the Japanese government's approach as protectionist.
Japan's industry minister on Wednesday had hailed the announcement
by Toshiba, saying the government-backed bid met the conditions he
had set for preventing technology leakage and keeping jobs at
home.
Write to Yoko Kubota at yoko.kubota@wsj.com
(END) Dow Jones Newswires
June 22, 2017 09:12 ET (13:12 GMT)
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