Donald Trump’s promise to bring manufacturing jobs to the US seems to be blindsided by Foxconn’s latest plans. While the nation was waiting for the promises made by Donald Trump to get fulfilled before his inauguration Jan. 20, the biggest tech company made an important announcement right before New Year.
Foxconn’s flagship Hon Hai Precision Industry Co. announced its plans to build a massive $8.8 billion factory to produce liquid-crystal displays (LCDs) for its joint venture with Sharp Corp. While the news sounds great, it will break millions of hearts as the location chosen is China, not the U.S.
Had they chosen America for the plant, it would have been a great move for Donald Trump who plans to bring Apple jobs back. A big reason why this can be one of the most disheartening news is because display panels are said to be among the most promising manufacturing job opportunities that Apple Inc. and its partners could offer to the U.S.
iPhone Jobs Are Not Coming To Donald Trump’s America
Many believe that Donald Trump got carried away into making the promises as Foxconn had earlier shown possibility of opening a large display plant in America. Back in 2014, chairman Terry Gou had made some comments at the company’s 40th anniversary. The company was planned for producing TV-sized display panels over 60-inches.
As indicated by Foxconn, the company will set up the plant but the location will be China, not the U.S. Had this plant planned in America, it could bring along the prospects for thousands of new jobs to the country.
A close observation of Foxconn’s quarterly sales since 2014 shows the numbers have dropped considerably. Considering that, the company has to take every move with extra care so as to push sales up once again and it couldn’t have made a better decision at this time. No doubts, a plant in China will be more beneficial to the company than a plant in the U.S.
iPhone manufacturing is done in various process and while some areas depend more on expensive equipment and materials, others lie in final assembly lean on labor. In this multi-step process workers add more value in the supply chain.
The workers are the ones who build Apple’s A-series processors by setting up the multibillion-dollar semiconductor equipment. From working the metal-carving machines and shuttle pieces to make gleaming shell of iPhone to making a razor-thin, crystal-clear Retina display through the chemicals, these labors work tirelessly to provide those classy iPhones.
These are the kind of jobs that the U.S. president elect Donald Trump promised to bring to the nation to provide citizens with high-quality manufacturing positions. The best jobs that could come to U.S. include the making of chips, displays, automated processes such as metal carving and plastic molding.
Taking into consideration the fact that oversupply of LCDs forced companies to incur billions of dollars in losses, Foxconn may not want to build another factory in the U.S. after choosing China. In almost all cases when manufacturers choose China, America was automatically out of the consideration.
The latest announcement by Foxconn shows that Donald Trump’s promise and the idea of making America great again will have to wait a little longer.