Apple Supplier Foxconn Looks at Producing Display Panels in Wisconsin
July 24 2017 - 4:49AM
Dow Jones News
By Yoko Kubota and Takashi Mochizuki
Taiwan's Foxconn Technology Group, which assembles Apple Inc.'s
iPhones, is nearing a decision to invest in Wisconsin and could
hold an event in Washington, D.C., as soon as this week to discuss
U.S. investment plans, people familiar with the matter said.
In Wisconsin, Foxconn is looking at producing display panels
that can be used in large-screen televisions, three people briefed
on the plans said.
The investment, if confirmed, would be the latest by Asian
manufacturers in the U.S. as President Donald Trump seeks to revive
manufacturing there.
Foxconn, formally known as Hon Hai Precision Industry Co., has
said publicly that it is looking at seven states in the U.S., where
it would invest a total of $10 billion or more to manufacture
flat-panel screens and related equipment. In June, a company
executive identified the seven as Illinois, Indiana, Michigan,
Ohio, Pennsylvania, Texas and Wisconsin.
In addition to Wisconsin, Foxconn is looking in the Detroit area
for a possible plant, two people familiar with the plans said. It
wasn't clear what that plant would make.
The people cautioned that a final decision hasn't been set and
that Foxconn could make last-minute changes. They said Foxconn was
contemplating events in Washington, D.C., and Wisconsin to discuss
its plans.
In an emailed statement, Foxconn said it was reviewing
"potential locations for establishing manufacturing facilities in
the U.S." but declined to name them.
In June, Foxconn Chief Executive Terry Gou said his company
would work with Sharp Corp., a Japanese electronics maker in which
Foxconn acquired a controlling stake last year, to develop U.S.
manufacturing plans. A Sharp spokeswoman declined to comment.
Mr. Gou has been meeting U.S. political leaders to discuss
possible sites, people familiar with the discussions said. House
Speaker Paul Ryan, a Republican who represents a district in
southeastern Wisconsin, said earlier this month that he has met
Foxconn officials.
Foxconn is the world's largest electronics contract
manufacturer, assembling iPhones, videogame machines and other
products. Its factories are mostly in China, and previous
discussions to expand manufacturing to the U.S. haven't
materialized.
In 2013, Foxconn said it might invest $40 million in
Pennsylvania for manufacturing and research facilities. In 2014,
Mr. Gou said he was studying the feasibility of an advanced-display
manufacturing plant in the U.S., since it was expensive to ship
large-screen televisions from Asia. Neither idea made headway.
Foxconn is building an $8.8 billion flat-panel factory in
southern China's Guangzhou, where it will build advanced
liquid-crystal displays with technology from Sharp.
Sharp's display panels are used in a wide variety of products
including large-screen televisions, smartphones, tablets and car
displays. If Foxconn decides to make displays in the U.S., it would
need to find customers among makers of those products or perhaps
build its own factories for the products.
A number of other Asian manufacturers have been looking at
expanding U.S. production. In June, Samsung Electronics Co.
announced a $380 million investment to expand its U.S.
home-appliance manufacturing operations in South Carolina. Also in
June, Humvee maker AM General said it is selling an assembly plant
in Indiana to China-backed SF Motors for $110 million.
Write to Yoko Kubota at yoko.kubota@wsj.com and Takashi
Mochizuki at takashi.mochizuki@wsj.com
(END) Dow Jones Newswires
July 24, 2017 04:34 ET (08:34 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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