Foxconn will build new facility in Shenzen next to Apple R&D center. The company is the biggest manufacturer for Apple’s product and key assembler for iPhone product.
According to Nikkei Asian Review, Foxconn Techology Group is planning to build new facility in Shenzen, China. The Taiwanese company will build its third campus next to Apple R&D center to manufacture prototype for Apple’s product.
Apple CEO Tim Cook visited the city in southern China last October and announced the plan to build the R&D center in Shenzen. The Cupertino-based company planned to build its research and development facility in China to create a closer relationship with its manufacturers. Apple will also build another R&D center in Beijing.
Foxconn was reported to be under pressure from China’s government to keep its facility in China and stop its expansion plann to U.S. after president Trump take office Jan. 20. China has really serious concern about Foxconn’s leaving the country, Bloomberg reported. A high ranking official in China is reported to express the concern in private to Foxconn CEO Terry Gou.
Gou convinced the government official that Foxconn will remain in China. However, he also seeks to find the way to build manufacturing facility in the American soil to avoid a 35 percent tariff for product manufactured overseas but sold in the United States. President Trump has iterated threat to increase tariffs as a way to force U.S. companies to bring their production back to the states.
Foxconn employed millions of worker in its manufacturing facilities China. Therefore, the company plays an important role to maintain social stability in China. Relocating some of the company’s facilities to the U.S. is a strategic business decision, but it can lead to social unrest in China.
Watch the documentary video about Foxconn factory in China below:
