Foxconn chairman Terry Gou has raised uncertainties over building an iPhone manufacturing plant in the United States. Gou made the comments while speaking to reporters at an event celebrating the start of construction on a $8.87 billion display plant in Guangzhou, China.
Hon Hai Precision Industry recently broke ground on a massive new panel production facility in southern China. But while the Taiwanese company is keeping its regional expansion on track, Chairman Terry Gou has hinted that its plans to invest in the U.S. may not materialize anytime soon, due to labor issues and a lack of incentives.
Gou told reporters he had just returned from a trip to Washington D.C. He did not confirm whether he had met with any members of the Trump administration during his visit. President Trump has long advocated for companies like Foxconn’s partner Apple to make some of its products in the U.S. in the place of foreign facilities in countries such as China.
The Foxconn chairman raised uncertainties over whether American officials can move fast enough to attract foreign investors such as Foxconn.
“I am concerned as to whether the U.S. can resolve all the investment issues in only a few months’ time,” Gou said, adding America also lacks the skilled labor and comprehensive supply chain the display industry requires.
“Does the U.S. offer incentive programs for foreign investors? They’ll need to pass bills first, and we’ll need to wait for American authorities to make a decision first,” Gou said.
But Gou still tried to strike a balance. “No one is willing to see a trade war happen,” he said. “I am not willing to choose between [the U.S. and China]. Why should I give up on any market?”
Gou also urged the world’s two biggest economies to work together instead of going toe-to-toe as they currently do.
“It is in the interest of the entire humanity that China and the U.S., the top two economies in the world, can get along peacefully,” Gou said. “They are in the process of gambling with each other, and I can foresee that the two will eventually work together to grow [their] economies and deliver beneficial outcome for many. If they don’t, then everyone will be losers.”
