Dive Brief:
- Taiwanese electronics manufacturer Foxconn announced Thursday that it is considering a five-year, $10 billion manufacturing investment in the U.S., according to The Mercury News.
- The company will reveal its final plans in August and said the plans could involve at least three U.S. states. Also included in the announcement could be more information on the tech giant's plans to build a $7 billion display panel factory in the U.S., which could create as many as 50,000 jobs.
- Terry Gou, Foxconn's CEO, said Ohio, Pennsylvania, Michigan, Illinois, Wisconsin, Indiana and Texas are in the running for the massive investment.
Dive Insight:
Foxconn manufactures smartphones and other products for companies like Apple, Sony and Blackberry. Entry into the U.S. market would reduce the company's dependence on China, where it currently employs roughly 1 million workers.
Some of the states that Foxconn is considering have seen significant foreign manufacturing investment over the last five years, as labor costs and the threat of increased import tariffs are pushing more overseas-based companies to consider expanding their operations into the U.S.
Japanese heating, ventilation and air conditioning equipment manufacturer Daikin announced earlier this month that it recently completed its $417 million, 4.2-million-square-foot factory complex near Houston. That investment has already paid off in additional development, as one of Daikin's major Chinese suppliers, Broad-Ocean Motor Co., unveiled plans to build its own manufacturing facility nearby. The local economic impact of the Daikin factory, which will employ 4,000 workers, is expected to be $4 billion.
German gummy bear manufacturer Haribo is also investing in the U.S. and building a $242 million, 500,000-square-foot gummy bear factory in Wisconsin. State officials have not made public the kind of incentives they offered Haribo but said the company will provide community benefits like job training and capital investments. The factory is expected to create 400 jobs, not including temporary construction positions.
