Foxconn believes it will take $7 billion to take Sharp to the US
Hon Hai Precision Industry chairman Terry Gou estimated out loud to reporters that his company, known to most as Foxconn, will spend $7 billion to build a display manufacturing plant for its subsidiary, Sharp.
Half of Foxconn’s business comes from assembling Apple’s iPhones while Sharp also provides some of the iPhone’s LCD panels. The latter is vying to provide OLED screens for a future iPhone starting in 2019. Infinite Loop is facing pressure from President Donald Trump to increase manufacturing in the US — that means making computers and, yes, iPhones domestically.
Gou believes that the new president’s “America First” manifesto, as first mentioned in his inaugural address on Friday, is not just a sign of the times when it comes to economy-driven political agendas.
The President is pledging to drive down corporate taxes, regulations and, it is hoped, the overall cost of business in the country. These factors will affect Gou’s cost estimates for Sharp’s move.
“The rise of protectionism is unavoidable. Secondly, the trend of politics serving the economy is clearly defined,” he said.
Complicating the Taiwanese company’s forward position is Trump’s negation of the US’s adherence towards the “one China” policy — the communist government believes that Taiwan isn’t a nation of its own right, but a renegade province under its control.