Taiwan’s Hon Hai Precision Industry, known as Foxconn, wants to re-create the Chinese production model in the U.S. It is yet another multinational jumping on the ‘made in America’ campaign of U.S. President Trump.
In January this year, Foxconn chairman Terry Gou pronounced its plans for the investment of $7 billion in the U.S., mainly for a new liquid crystal display factory. Many industry players see the massive investments as an imprudent decision. Manufacturing has moved from the West to the East over the past few decades. This history of industrial development suggests that moving back doesn’t make sense.
With the advantage of low costs, China has been the production site of Foxconn for smartphones, computers, servers and TV’s. But prices are becoming less important for boosting unit sales of electronics, as quality and delivery will be more important factors, according to Asian Nikkei Review. Foxconn expects to improve its delivery by narrowing the distance between the producer and consumer.
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