A number of key Apple suppliers are considering new facilities in the U.S., according to reports out of China.
Assembler Foxconn, display maker Sharp, and chip maker TSMC are all said to be interested in taking advantage of new business incentives proposed by soon-to-be President Donald Trump.
Trump is keen for big companies like Apple to manufacture goods in the United States, so he has proposed to ease regulation and cut taxes to encourage just that. This makes the U.S. a more attractive prospect, and foreign businesses are taking note.
According to Nikkei, Foxconn, which assembles most of Apple’s devices, and its subsidiary Sharp are just two of the companies mulling expansion in the U.S. The plan is “on the table,” according to one Sharp executive. “We will make a decision carefully.”
“Foxconn, and its Japanese alliance partner SoftBank Group reportedly told Donald Trump they would jointly make significant investments creating new jobs in the U.S. when SoftBank Chairman Masayoshi Son met the President-elect in New York last month,” adds Nikkei.
It’s not yet clear how big these factories could be, or how much Foxconn and Sharp might invest in U.S. manufacturing. However, “people familiar with the plan” say that they would spend approximately the same amount that was invested in the new LCD plant in Guangzhou.
That cost roughly 1 trillion yen ($8.69 billion), some of which is being stumped up by the government, and will become one of the world’s largest LCD panel plants.
Meanwhile, Digitimes reports that TSMC, which manufactures Apple’s A-series processors, is also considering a U.S.-based manufacturing facility. Chairman Morris Chang said the company “has not ruled out” the possibility of setting up shop in America under Trump.