Foxconn Has Plans to Build Massive $7 Billion Factory in the US – Founder Says Heavy Incentives Will Be Required
Assembly giant Foxconn is looking over plans to build a massive factory in the United States that will mass produce flat screen panels. However, the funds required to complete the construction of the factory will amount to $7 billion USD, suggesting that Foxconn isn’t just going to go along with the plan unless and until the US is able to provide the manufacturer with some attractive incentives.
Foxconn Panel Construction Factory Will Largely Depend Upon Getting Incentives Such as Power and Land at Bargain Rates
Company founder Terry Gou spoke at a Foxconn company event (via The Wall Street Journal) that was held in Taiwan and said that the completion of the factory would be able to provide between 30,000 to 50,000 jobs in the US. Discussions were already underway, with Pennsylvania being one of the potential locations chosen to begin construction of the factory.
However, Gou has stated that the green light being given on the construction process is far from being illuminated because the only way Foxconn would be enticed to start building a factory was if the government would provide it with lucrative incentives.
“But then when he and Trump met with the media, he [Mr. Son] exposed me. If U.S. state governments are willing to provide these terms, and we calculate and it is cheaper than shipping from China or Japan, then why wouldn’t Sharp build a factory in the U.S. Right now Pennsylvania is very proactive. I have to tell other states to hurry up or we’ll go ahead and sign with Pennsylvania.”
Signing a deal as big as this would require Foxconn to get incentives in the form of land and power at exceptional rates. Gou also states that if this scenario would end up being cheaper than shipping from China or Japan, then Foxconn would be more than ready to start the construction phase of the facility. In fact, the company’s founder has been intending to construct a US-based Foxconn factory for years. The idea came up because it was extremely costly to ship large-screen displays and televisions from Asia.
However, the plan could not be brought to fruition because the US government did not provide the company with attractive incentives at the time. Looks like with Trump sworn as POTUS, all that might change quickly.
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