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Foxconn plans to setup manufacturing plants in US: Report

Foxconn plans to setup manufacturing plants in US: Report

By NDTV Correspondent | Updated: 9 November 2012 12:39 IST

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A rather peculiar report in Digitimes states that Foxconn is planning to setup manufacturing plants in the US.

Foxconn is the world's largest maker of computer components that counts the likes of Apple, Sony, Nokia, Samsung, Microsoft, Amazon, Dell, HP, Toshiba and Nintendo amongst its clients. It employs about one million workers in China, roughly half of them based in its main facility in Shenzhen, which borders Hong Kong. Foxconn also manufacturing facilities at various locations across the world, including, Brazil, Europe, Malaysia, Japan and Mexico. However it has no manufacturing units in the US - at least until now.

The Digitimes report quotes "market watchers" who expect Foxconn to setup factories that would manufacture "low tech" equipment like LCD TVs instead of, say, Apple's iPhone that is more complicated to manufacture.

Foxconn Electronics (Hon Hai Precision Industry) reportedly plans to establish manufacturing plants in the US and is currently conducting evaluations in cities such as Detroit and Los Angeles, according to market watchers. Since the manufacturing of Apple's products is rather complicated, the market watchers expect the rumored plants to focus on LCD TV production, which can be highly automated and easier.

While it is possible Foxconn is considering the move to meet demand from some companies look to move manufacturing back to the US, Digitime has a less than stellar record, so make what you will of the report.

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Further reading: Foxconn, Foxconn Electronics