Foxconn to expand to the US for clients seeking made in USA designation

Dec 7, 2012
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Foxconn to expand to the US for clients seeking made in USA designation

About a month ago, rumors started circulating that Foxconn was looking for the opportunity to expand into the United States. Foxconn is one of the main manufacturers of a number of products that Apple designs. Interestingly, some of Apple's iMac all-in-one computers are now pegged as assembled in the United States.

Products with the made in the USA designation are a very big deal to some consumers in the US. Typically, manufacturing operations for companies such as Foxconn are conducted in China where labor is significantly cheaper than in the US. However, Bloomberg is now reporting that Foxconn is in fact planning an American expansion to be able to offer its clients products that are Made in USA.

Foxconn Chairman Terry Gou has stated that he wants to bring US engineers to Asia where they can be trained in manufacturing before putting them to work in the US. Some of the components that Foxconn uses in construction today are manufactured in the US reports Bloomberg including processors for phones and the glass that is used in displays.

At this point, it remains unclear which Foxconn partners (other than Apple) are pushing for made in USA, and when Foxconn might launch operations within the US. Apple CEO Tim Cook hasn't offered any details on where the manufacturer in the US would take place or how many Apple products would be produced in the US. However, Cook has said that US operations would include more than final assembly. FTC rules specifically note that a product can't simply be screwed together in the US and be called Made in the USA.

[via Bloomberg]


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