Foxconn And Apple Plans To Build A Seven Billion Manufacturing Plant In The U.S.

The giant tech Apple recently announced that it will be transferring some of its iPhone production to the United States. Foxconn Technology Group is planning to build a U.S. display-panel facility with an investment of $7 billion. According to some reports, Apple is willing to invest in the facility together since it could create 30,000 to 50,000 jobs in the United States.

However, company's Chairman Terry Gou said that U.S.-made iPhones would cost more than those manufactured at Zhengzhou, a China facility, which produces more than 100 million iPhones per year. He added that in the future, U.S. consumers may be paying some $500 more for (U.S.) products, but those do not necessarily work better than a $300 phone.

During Trump's campaign, he had repeatedly threatened high import tax in order to persuade American and foreign companies to move production to the US. President Trump blamed China as a significant cause of lost manufacturing jobs in the U.S.

Foxconn's prospective U.S. plans remain preliminary for now. The facility could cost more than $7 billion and at the same time, bring manufacturing closer to the largest market for iPhones and iPads, a potential rise for Apple, which makes about half of Hon Hai's revenue.

Apple has received several threats from President Donald Trump over manufacturing its products in China. However, President Trump told Apple's CEO Tim Cook in a phone call that if they will build plants in the United States, Apple will get tax breaks and will reduce regulations for the company.

"Tim, you know one of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States," Trump said. Apple hasn't yet reacted on Foxconn's statements, although this is not the first time that Apple reported that it might transfer some of its manufacturing to the U.S.