Foxconn Eyeing US for $10 billion Investment; Looking After Toshiba Deal

[Raevenlord]

Taiwan-based Foxconn, one of Apple's main suppliers, is looking to expand its operations in the US to the tune of $10 billion. The company is still deciding which state will get the greatest solo investment, in the form of a $7 billion display factory (worth mentioning here is that Foxconn's display manufacturing has seen a recent buff by the acquisition of Sharp.) Reportedly, investments are being considered in Ohio, Pennsylvania, Michigan, Illinois, Wisconsin, Indiana, and/or Texas. There was no given timeframe for the construction's start or finish, but a final decision should be made public in July. Foxconn's CEO Terry Gou also vowed to press on with a bid for Toshiba Corp.'s semiconductor business, although the Japanese company has already selected a preferred buyer in the form of a Japanese and US joint venture. Such a deal could cost $27 billion and introduce Foxconn (and, likely but indirectly, China) into the memory chip business.





"Our investment in the U.S. will focus on these states because they are the heart of the country's manufacturing sector," Terry Gou told investors. "We are bringing the entire industrial chain back to the traditional manufacturing region of the U.S. That may include display making, semiconductor packaging and cloud-related technologies," Gou told reporters later, without elaborating. If such a venture succeeds, that spells great news for the US economy and employment opportunities, even though Foxconn has been investing in the development of a more automated production environment, in a bid to cut workforce costs. One thing is certain: whichever the state that ends up being chosen will see tremendous value added to its economy. Remember, where a big investment lands, other satellite investments soon follow, be it in infrastructure or other areas.

View at TechPowerUp Main Site

 

[TheLostSwede]

Sorry, but Foxconn is a Taiwanese company, so Terry buying Toshiba's semiconductor business wouldn't really introduce anything into China, unless Foxconn decides to build plants there for making semiconductors.

They guy has clearly lost his mind, as there's no way Japan is going to allow him to take control over Toshiba's semiconductor business. He might be able to do it with some kind of joint venture with Japanese partners that will own at least 50% of the company, but that's not something he's going to want to do.

 

[Raevenlord]

Sorry, but Foxconn is a Taiwanese company, so Terry buying Toshiba's semiconductor business wouldn't really introduce anything into China, unless Foxconn decides to build plants there for making semiconductors.

They guy has clearly lost his mind, as there's no way Japan is going to allow him to take control over Toshiba's semiconductor business. He might be able to do it with some kind of joint venture with Japanese partners that will own at least 50% of the company, but that's not something he's going to want to do.

Considering Foxconn has a substantial manufacturing presence in mainland China, I think that isn't all that unlikely, though.

 

[Xzibit]

Does Work Comp cover work related suicides

Insurance would go through the roof in the States.

 

[Deleted member 67555]

Makes me wonder...
There has been talk of some huge factory possibly being built where I live...
They were looking at a property where the world's 3rd largest steel mill used to sit on a 1000 acre lot... that and this area has an abundance of skilled manufacturing workers looking for a job.
I've also noticed an increase of Chinese business professionals taking tours of where I work... Seriously hoping someone buys this place.

 

[HopelesslyFaithful]

everytime i hear a company invest in the US I assume and think there is some serious cronyism involved seriously screwing over the tax payer in some massive fraud.

http://reason.com/blog/2017/03/15/government-picks-a-cleantech-loser-again
http://reason.com/archives/2016/04/28/elon-musk-crony-capitalist
http://reason.com/blog/2017/05/12/another-solar-boondoggle-goes-belly-up

 

[FordGT90Concept]

Look 10 years down the road: China's middle class is going to want more compensation for the labor they do and the price of oil could easily be double what it is today because the primary Middle East suppliers won't be producing nearly as much as they are today. On top of that, USA offers security and stability that is lacking in southeast Asia not likely to improve over the next decade. These all combine to make automated manufacturing the USA attractive.

Companies around the world are refraining from putting all their eggs in one basket because slips in supply is as bad as slips in demand (lose buyers).

Let's also not forget that states will give crazy incentives to snag a large manufacturer setting up shop in their borders.

 

[PowerPC]

This is why Trump was elected. Take away the ten thousand page regulation bibles on businesses and infrastrukture, and "suddenly" companies and jobs are flooding in.

 

[HopelesslyFaithful]

This is why Trump was elected. Take away the ten thousand page regulation bibles on businesses and infrastrukture, and "suddenly" companies and jobs are flooding in.

with 100s of millions in kick backs......

 

[PowerPC]

with 100s of millions in kick backs......

Except you only really need the kick backs when there are mountains of rules, but you want to be the exception to those rules.

 

[HopelesslyFaithful]

Except you only really need the kick backs when there are mountains of rules, but you want to be the exception to those rules.

you need kick backs when you want to play favorites and pick winners and loser and help out friends and manipulate the market.

 

[PowerPC]

you need kick backs when you want to play favorites and pick winners and loser and help out friends and manipulate the market.

And that is only really necessary when there are so many rules like today. Why do you think big companies seem to get away with everything, while small companies always get fined or shut down for the same things? It's easier to start a business when you don't have to pay kick backs to every Joe Shmoe 'consultant' just for a way to circumvent all the rules. The only reason we have all this overly complicated bureaucracy, and why businesses are staying out, is to benefit those people.

 

[HopelesslyFaithful]

And that is only really necessary when there are so many rules like today. Why do you think big companies seem to get away with everything, while small companies always get fined or shut down for the same things? It's easier to start a business when you don't have to pay kick backs to every Joe Shmoe 'consultant' just for a way to circumvent all the rules.

yea......100s of millions in loans, tax breaks, credits, and so on is because there are too many rules hahahahahhaha

 

[PowerPC]

yea......100s of millions in loans, tax breaks, credits, and so on is because there are too many rules

What is even your point? I'm saying tax breaks should be for all companies, not just for the biggest corporations that pay off politicians to get an exception. It's called laissez-faire, funnyman.

If you like the idea of restricting businesses, maybe go live in one of those communist countries. I heard the weather is really good there.

hahahahahhaha

Don't be a douche.

 

[HopelesslyFaithful]

What is even your point? I'm saying tax breaks should be for all companies, not just for the biggest corporations that pay off politicians to get an exception. It's called laissez-faire, funnyman.

If you like the idea of restricting businesses, maybe go live in one of those communist countries. I heard the weather is really good there.


Don't be a douche.

I would like to live in a country where politicians can't play favorites and the market works without grotesque manipulation. Have fun with giving government the power to abuse.

Just let things run and work on their own merit...is that too much to ask?

 

[PowerPC]

Just let things run and work on their own merit...is that too much to ask?

Isn't that the opposite of what you want?

 

[HopelesslyFaithful]

Isn't that the opposite of what you want?

your trolling right? Where would you get that?

 

[R-T-B]

This is why Trump was elected. Take away the ten thousand page regulation bibles on businesses and infrastrukture, and "suddenly" companies and jobs are flooding in.

This is far more likely a result of Brazil screwing them over (and them subsequently needing new american infrastructure following them leaving that nation) than anything to do with USA politics. Not that that'll stop politicians from taking credit, mind you.

Oh, and Trumps record as a business man is a pretty sad joke.

 

[remixedcat]

Pick WV we need jobs!

 

[Mr.Scott]

Oh, and Trumps record as a business man is a pretty sad joke.

Really? Was he born with a 3.5 billion net worth?

 

[R-T-B]

Really? Was he born with a 3.5 billion net worth?

IIRC, most of his wealth came from his father and he would have done better with a standard savings account.

So kinda, yeah.

 

[Xzibit]

IIRC, most of his wealth came from his father and he would have done better with a standard savings account.

So kinda, yeah.

Silly,.. Your assumption is that he would have received 100% of his fathers company assets. Did he have other children, spouse ?

One thing is receiving money another is expanding on it.

 

[R-T-B]

Silly,.. Your assumption is that he would have received 100% of his fathers company assets. Did he have other children, spouse ?

One thing is receiving money another is expanding on it.

I fail to see how stating his record is less than impressive is "silly." I was stating that figure without that assumption by the way, based solely on what he received.

I could go dig up more facts on his various near bankruptcies too, but I'd rather not continue this line of discussion honestly. Some google-fu can confirm what I stated.

 

[Xzibit]

I fail to see how stating his record is less than impressive is "silly." I was stating that figure without that assumption by the way, based solely on what he received.

I could go dig up more facts on his various near bankruptcies too, but I'd rather not continue this line of discussion honestly. Some google-fu can confirm what I stated.

Fair enough I was just commenting on these

Oh, and Trumps record as a business man is a pretty sad joke.

IIRC, most of his wealth came from his father and he would have done better with a standard savings account.

So kinda, yeah.

His fathers $250 was devided up 5+. As far as the business side he was savy enough to use the system to his benefit and still come out on top. Even got the banks to loan him more.

Not sure how that is even a sad joke or even a saving account would have benefited better. The majority of people in the world do far worse with their money.

 

[R-T-B]

The majority of people in the world do far worse with their money.

The majority of businesses also fail. When talking business-success, the majority is an extremely poor metric for succesful business, as the majority IS a sad joke. I just get sick of people presenting the president as some titan of industry, he's not.