The rise in demand for American products in technology market has lead Foxconn Technology Co Ltd (TT: 2354) to consider invest more in its manufacturing operations and it has expressed intentions of moving ahead into North America. The Taipei based tech concern largest supplier of chip sets for two of the fantastic four in the internet technology industry, Hewlett-Packard Company (NYSE:HPQ) and Apple Inc. (NASDAQ:AAPL). It currently employees a global workforce of over 1.6 million to assemble its products including servers and is majorly stationed in California and Texas.<\/p>\n
Foxconn Technology Co Ltd (TT:2354) seeks to manufacture more at home base in USA to lock in quality conscious customers who demanded \u201cmore to be done there,\u201d said Louis Woo, a spokesperson. \u201cSupply chain is one of the big challenges for U.S. expansion,\u201d. He also pointed out that moving manufacturing away from low-cost countries like China \u201cneeds to leverage high-value engineering talent\u201d. The statement seemed like an echo of company\u2019s founding Chairman Terry Gou\u2019s vows to train and test the U.S. engineering talent at Asian sites before employing them at US factories.<\/p>\n
Gou\u2019s company makes processors chip sets for cell phones and display screen at U.S sites and employs over 1.5 million people in China. This is why its supply chain could easily exploit this proximity advantage for greater flexibility, lower delivery times and reduced transportation costs.<\/p>\n
Yesterday, Tim Cook Chief Executive Officer of Foxconn Technology Co Ltd (TT:2354) largest client, Apple Inc., (NASDAQ:AAPL) also disclosed his company\u2019s intention to create more jobs in the US when it shifts Mac manufacturing operations to US. In a Bloomberg Business Week interview he said that the iPhone and Mac manufacturer would invest over a $100 million to relocate production from China. He also mentioned that his company would prefer partnering in the US market over going solo on production front.<\/p>\n
The Apple Inc. (NASDAQ:AAPL)\u2019s iPhone that are marked \u201cAssembled in China,\u201d have chip sets designed by U.S. companies and manufactured at Taiwanese companies like Taiwan Semiconductor Manufacturing Co.. Its Macs, iPods and iPads are also assembled in China. Despite the fact that Woo declined to reveal any specific segment of the customer base both his and Cook\u2019s statements shared one common denominator, i.e. moving manufacturing away from China<\/em>.<\/p>\n Shares of Apple Inc. (NASDAQ:AAPL) were down by 2.56% to close at $533.25, Shares of Hewlett-Packard Company (NYSE:HPQ) were up by 0.80% to close at $13.94, and shares of Foxconn Technology Co Ltd (TT: 2354) were down by 1.96% to close at TWD 100.<\/p>\n","protected":false},"excerpt":{"rendered":" The rise in demand for American products in technology market has lead Foxconn Technology Co Ltd (TT: 2354) to consider invest more in its manufacturing […]<\/p>\n","protected":false},"author":15,"featured_media":4922,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[1002,1051,1445],"stock_ticker":[],"class_list":["post-4877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-nasdaqaapl","tag-nysehpq","tag-tt-2354","entry"],"acf":[],"yoast_head":"\n