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.

Foxconn has been eager to appease its biggest customer and has tailed Japanese tech conglomerate SoftBank in devoting investment to the United States with heavy influence and association with Trump.

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.

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Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.