Monday, January 23, 2017

More calculus than Trump: Foxconn and Apple are planning a US factory NEWS

Monday, 23. January 2017

By Diana Dittmer

The electronics supplier Foxconn and a major client is Apple willing to invest billions in the USA. In order to not only Trump and his “America first”claim. Behind schedule a hard-hitting statement.

Only took Donald Trump, the car manufacturers back to America. Now it is Apple and its Taiwanese suppliers Foxconn, the present large plans in the United States. And again, it seems as if companies kowtow to the new US President and his “America first”claim.

Both companies are planning a new plant for the production of screens in the United States. The estimated cost for the construction of at least seven billion US dollars, according to the newspaper Nikkei Asian Review writes citing Foxconn’s chief Terry Gou. The factory could create up to 50,000 Jobs.

the plans were immediately after the inaugural speech of the new President is known, it can be guessed, it could be to do once more with his program “America first”. Trump threatens companies with the punitive tariffs, if you want to introduce products for the American market. The production abroad could be in the future significantly more expensive, may be unprofitable. Only too gladly he would sell the announced the Foxconn Deal, certainly as to its success. But he is due really to him?

is true, Trump, Apple had actually made a prior announcement in terms of “America first”. Foxconn should have expected, therefore, already a few weeks ago – at the suggestion of Apple, what would be the cost of production in the United States alternatively. This is not to say, however, that the Seven-billion-Dollar-Plan can actually be used as Trumps income statement. As in the case of the car manufacturers, also applies in the case of Foxconn and Apple, that it is at the end of the entrepreneurial calculus is given by the rash. This can be at many points.

Gou is pursuing a strategy with the factory. He wants to drive some dimensions of a two-pronged approach, which is likely to increase its Profit significantly: The United States is the second-largest market for TV devices, but still not a single work for the screen production, he explained. Therefore, he wants to produce in the factory in addition to Displays for Smartphones and TV screens. Apple is on Board, because the company needs the Displays.

An investment in America is no longer useful, because the cost of labor in Taiwan, Japan or the US is different today is not so large, as in the past. In China, wages have risen strongly. In addition, the electronic production is not the wages, but the cost of capital play a major role. The money is meant to be used by a company for its investment – i.e. equity or debt capital. Since the cost of capital almost anywhere in the world, it doesn’t matter where a factory is built.

For a US site also speaks that there is in the United States, the necessary skilled personnel. Cheaper work forces of no use, if the workers have to have a certain know-how. In addition, higher US, will be compensated in wages because the productivity is higher.

in addition to the labour and capital a firm must calculate the cost of cost of cost transport. Also, the speak out against Trump, as a mother, the idea to invest billions in the United States. Import duties have doubled since the American civil war. Because of the transport costs at the same time much more steeply, it made sense to take long journeys in purchasing. Only the Displays are getting larger, therefore the freight costs are playing a role. And production facilities in the vicinity of the markets, costs suddenly.

To was last but not least, the Plan for a factory in the US overnight, but was, according to Gou a year ago in planning. At the time, was not seriously foreseeable, and that Trump would be President of the United States. The idea had been re-activated, after he met with Softbank chief Masayoshi Son, said Gou. Son wants to self-invest in a large scale in the United States.

More about

Gou is an entrepreneur. And, therefore, the Plan is to invest seven billion dollars in the United States is also far from cut and dried. It was a request but no promise, he said. The construction of the factory depends of many factors: The terms and conditions for investment would have to be negotiated at state and Federal levels of government, Gou.

A retreat from China would not mean the new factory in the United States, in addition to said he. As much as Trump is likely to be happy about Foxconn’s plans, so much so Beijing is likely to be disturbed. The Taiwanese company’s biggest contract manufacturer of electronics devices and one of the biggest employers in China, is the world. The entrepreneur Gou stands between the chairs. The bottom line eight.




No comments:

Post a Comment