Foxconn Denies Plans For New US Operations

pigrabbitbear writes with an update to the story, based on a DigiTimes report, that iPhone maker Foxconn would be opening a new factory in the U.S. "Foxconn makes a lot of stuff, but as it's one of Apple primary manufacturing partners, lots of people jumped to the salacious conclusion that a U.S.-based Foxconn factory could finally produce an American-made iPhone. Foxconn denied the DigiTimes report today. A company spokeswoman told CNET that the company actually 'already has multiple facilities based in the U.S.' but that 'there are no current plans to expand our operations there at this time.' Foxconn doesn't make iPhones in the existing U.S. factories, and they don't plan to."

Comments

US slaped by market invisible hand

[manu0601]

Given that iPhone assembly require human work, it was quite unlikely that Foxconn could find cheaper manufacturing costs in US rather than in China. The only hopes to bring back production in the US are a huge raise in transport costs (as if we ran out of oil for instance), or to give up on worldwide free trade.

How the U.S. Lost Out on iPhone Work

[bill_mcgonigle]

Quote:

When an Apple team visited, the Chinese plant's owners were already constructing a new wing. "This is in case you give us the contract," the manager said, according to a former Apple executive. The Chinese government had agreed to underwrite costs for numerous industries, and those subsidies had trickled down to the glass-cutting factory. It had a warehouse filled with glass samples available to Apple, free of charge. The owners made engineers available at almost no cost. They had built on-site dormitories so employees would be available 24 hours a day.

The Chinese plant got the job.

"The entire supply chain is in China now," said another former high-ranking Apple executive. "You need a thousand rubber gaskets? That's the factory next door. You need a million screws? That factory is a block away. You need that screw made a little bit different? It will take three hours."