Foxconn yesterday officially confirmed its plans to build a $10 billion display manufacturing plant in Wisconsin, a move that had been rumored for a long time. Just a few days before that, however, President Trump touted that Apple had promised him 3 “big, big, big” factories in the United States, yet Foxconn’s new Wisconsin factory won’t be for Apple displays, but rather Sharp.
Some have speculated that Trump may have gotten Foxconn confused with Apple, and a new report from The Wall Street Journal outlines just how unlikely it is for Apple to expand to the United States so quickly…
Apple has yet to comment on President Trump’s statement earlier this week and the White House has likewise avoided requests for additional comment or clarification about the remarks.
Experts say that the chances of Apple dramatically expanding its United States manufacturing presence are slim:
Supply-chain experts and analysts say the prospect of Apple building one plant in the U.S.—much less three—is highly unlikely. Apple has built a sophisticated supply chain in China because that is where component suppliers are located, and manufacturing workers are abundant there. Shipping iPhone or iPad materials to the U.S. for production would cut into Apple’s profit margins, observers say.
“You don’t go from small facilities for a Mac to three plants,” said Carolina Milanesi, an analyst with the technology firm Creative Strategies.
Apple has dabbled in United States manufacturing in the past, though without much success. Most recently, in 2012, the company announced a $100 million investment to build the Mac Pro in the United States. Apple subsequently announced manufacturing plants for Texas and California in partnership with contract manufacturers Flex Ltd.’s Flextronics and Quanta Computer Inc.
Source: 9to5mac