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Foxconn 'considers plan to open factories in US'

Foxconn, the controversial Taiwanese manufacturer that has become one of the world's largest employers thanks to booming demand for the Apple products it assembles, is reportedly planning to open factories in the United States.

With an 800,000 strong workforce largely based in mainland China, Foxconn is one of the businesses that has profited from the decline of western manufacturing. Now the firm is apparently planning to reverse the labour drain by opening American factories.

As labour costs surge in its home market Foxconn has been looking overseas for opportunities, and sources have told Taiwanese trade publication DigiTimes that the company is evaluating cities including Detroit and Los Angeles.

The news should cheer Barack Obama, who has promised to create 1 million new manufacturing jobs over the next four years. Foxconn will have to adapt its formula, however, because America does not have armies of workers willing to survive on a few hundred dollars a month and live in dormitories as its Chinese staff do.

In Foxconn's huge assembly halls in China, iPhones and iPads are largely put together by human hands, with very little automation. In the US, sources say Foxconn will specialise in flatscreen TV sets, which are easier to assemble with the help of robots.

Source: The Guardian

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