Foxconn says in preliminary discussions to expand U.S. operations

Image
Reuters TAIPEI
Last Updated : Dec 07 2016 | 1:28 PM IST

TAIPEI (Reuters) - Foxconn, the world's largest contract electronics manufacturer and a major Apple Inc supplier, said on Wednesday that it was in preliminary discussions to expand its operations in the United States.

"While the scope of the potential investment has not been determined, we will announce the details of any plans following the completion of direct discussions between our leadership and the relevant U.S. officials," it said in a statement.

On Tuesday, Masayoshi Son of Japan's SoftBank Group Corp said he would invest $50 billion in the United States and create 50,000 new jobs, a move U.S. President-elect Donald Trump claimed was a direct result of his election win.

Foxconn's brief statement followed a report by broadcaster CNBC on Wednesday showing a snapshot of a page held by Son outlining the investment carrying the logos of SoftBank and Foxconn, formally known as Hon Hai Precision Industry Co Ltd .

The page also showed an additional $7 billion investment and creation of a further 50,000 jobs.

Trump has campaigned to bring manufacturing and jobs back to the U.S. Much of the global tech supply chain involves Taiwanese companies such as Foxconn, whose biggest operations are in China churning out the majority of Apple's iPhones.

Foxconn in its statement did not specify who its executives were in discussions with but said that any "plans would be made based on mutually-agreed terms."

SoftBank's Son and Foxconn founder Terry Gou are considered close and have several business ventures together, including launching humanoid Pepper - which is manufactured by Foxconn - into several markets, and together investing in India.

Foxconn has manufacturing facilities in the U.S. states of Virginia and Indiana, its website showed. Its 2015 annual report also listed logistics services in California and Texas.

(Reporting by J.R. Wu; Editing by Muralikumar Anantharaman and Christopher Cushing)

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 07 2016 | 1:12 PM IST

Next Story