Apple iPhone manufacturing partner Foxconn has confirmed that it is in preliminary discussions regarding an expansion of its operations in the United States. The confirmation follows a CNBC report that showed a slide suggesting the company would invest $7 billion and create 50,000 new jobs in the U.S.
The news report focused on Japanese company SoftBank pledging to invest $50B and create 50,000 jobs in the USA. However, a slide also showed a Foxconn logo on the right together with reference to an additional investment and extra jobs. The obvious inference is that the numbers on the right refer to Foxconn.
Reuters reports that while Foxconn has issued a statement confirming discussion of U.S. expansion, it would not comment on the exact numbers.
While the scope of the potential investment has not been determined, we will announce the details of any plans following the completion of direct discussions between our leadership and the relevant US officials.
Foxconn currently has manufacturing facilities in Virginia and Indiana, as well as logistics operations in California and Texas.
President-elect Donald Trump immediately took credit for the $50 billion SoftBank investment:
Masa (SoftBank) of Japan has agreed to invest $50 billion in the U.S. toward businesses and 50,000 new jobs….
— Donald J. Trump (@realDonaldTrump) December 6, 2016
Masa said he would never do this had we (Trump) not won the election!
— Donald J. Trump (@realDonaldTrump) December 6, 2016
However, the Dow Jones later said the $50 billion would be part of a $100 billion investment fund announced prior to the election. SoftBank is the majority stockholder in number four U.S. wireless carrier Sprint, and has pursued a merger with number three carrier T-Mobile, although earlier attempts were abandoned, due to anti-trust concerns.
“I do believe that some manufacturing may come back to the United States, primarily because of the fact that president-elect Donald Trump is going to twist Apple’s arm,” Colin Gillis, an analyst at BGC Partners, told CNBC’s “Power Lunch” on Tuesday. “And there’s been reports that Foxconn is reviewing being able to assemble plants, and it would be a good thing.”
Still, when President Barack Obama tried to pressure Apple into moving manufacturing jobs back to the U.S, co-founder Steve Jobs told Obama “those jobs aren’t coming back,” according a 2012 New York Times report.
“I do think the reality is, it would only be a sliver, a percentage of the phones that were made that were assembled in the United States,” Gillis said. “We’re talking, some de minimis amount merely to try to check the box.”
