Foxconn eyes factories in U.S., Indonesia in ambitious growth plans
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[January 27, 2014]
By Faith Hung
TAIPEI (Reuters) — Taiwan's Foxconn
Technology Group, the major supplier of Apple Inc's iPhone and iPad
products, said it's considering expanding manufacturing to the
United States in a move that could open up new prospects for
business with Apple.
Chairman Terry Gou also said Indonesia will be a top priority for
investment this year. That would tie in with Foxconn's deal to
design and market phones in the country with BlackBerry Ltd as the
Canadian company seeks to reverse its decline in the smartphone
"The U.S. is a must-go market," said Gou, speaking at the group's
annual year-end party on Sunday. He said many customers and partners
hope Foxconn, the world's largest contract manufacturer of
electronic goods, will set up manufacturing facilities in the U.S.
Foxconn's ambitious growth plans could see it lift annual revenue to
T$10 trillion ($333 billion) a decade from now, from T$4 trillion in
The group, which includes flagship unit Hon Hai Precision Industry
Co Ltd and Foxconn Technology Co Ltd, could take advantage of
geographical proximity to open up new deals with partners like Apple
as they develop new gadgets.
Best known for putting together iPhones, Foxconn honed its skills by
meeting Apple's exacting standards and supply chain rigor. It boasts
a workforce of more than 1 million, and the scale to negotiate
cheaper component prices than BlackBerry could obtain on its own.
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Gou placed emphasis on Indonesia for future development. He said the
country, rather than India, will be best able to replace China as
the world's manufacturing hub in the future.
Indonesian government officials have said Hon Hai wants to
gradually invest as much as $10 billion over 5 years with local
partner Erajaya Swasembada, and Indonesia will offer the Taiwanese
firm a tax package aimed at kick-starting the plan. Hon Hai has yet
to confirm these details.
(Reporting by Faith Hung; writing by
Michael Gold; editing by Kenneth Maxwell)
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